One of the hottest altcoins on the crypto market may have more room to run, according to a closely followed trader.
Pseudonymous trader Cantering Clark says that Stacks (STX), a project meant to boost the utility of Bitcoin (BTC), could be due for a short squeeze based on how much open interest is building up on the coin.
The trader tells his 161,000 Twitter followers that STX, which is already up 217% in the last 30 days, is likely due for a squeeze to the upside, but notes that high open interest hasn’t always signaled legs up.
“STX funding is -.21 on Bybit right now.
First line of thinking might be that since OI [open interest] is up aggressively with this it is due for a squeeze. Same logic with APT (Aptos) occurred but the ridiculous funding marked the high.
Sellers ate all buying, no squeeze came.
Worst case scenario whoever is selling loses their average price.
So breaking $1 would be pretty bad.”
At time of writing, STX is trading at $0.92, up 24% in the last 24 hours.
Cantering Clark is also watching DYDX, the token that powers popular decentralized crypto exchange (DEX) Dydx.
According to him, DYDX could be in the midst of a quick consolidation phase before a rally to new local highs. He shares a chart suggesting that DYDX has bounced off of strong support near the $2.80 level and is heading up through a downward trend line.
“Want to see DYDX really start to push here if this level is just a pit stop before continuation.
So far it looks really good and is one of the strongest pairs today.”
At time of writing, DYDX is trading at $2.96, up 6% on the day.
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