STABLE, the native token of StableChain powered by USDT, has exploded by almost 50% in the last 24 hours.
Since StableChain is backed by Bitfinex, Tether’s liquidity layer for USDTO and PayPal stablecoins, USAT announcement seems to have ignited the STABLE bulls.
Following the USAT update, STABLE trading volume exploded by 250% during the run.
However, at press time, the token had given back most of the gains following the post-FOMC risk-off tone and broader crypto retracement.
Source: STABLE/USDT, TradingView
What’s next for STABLE
For those unfamiliar, StableChain is part of a line of payment-focused rails that seeks to remove frictions seen in existing blockchains, like gas tokens for transfers. Other chains specifically designed for stablecoin payments include Plasma, Stripe-backed Tempo, and Circle’s Arc.
Plasma and StableChain are backed by Tether, so the positive USAT update may have contributed to the explosive rally.
In addition, the network is program for an upgrade on February 4, aimed at adding new features such as gas waivers and smoother payment integrations.
Meanwhile, the STABLE token is up over 90% from mid-January lows, and if positive market sentiment persists, the recent downturn could provide further buying opportunities.
As such, if the golden ratio of $0.02 (61.8% Fib level) holds, the token can retest overhead resistance at $0.032.
Source: STABLE/USDT, TradingView
Otherwise, the loss of the golden ratio could send the token down to the multi-week support trendline (blue).
That said, at the time of writing, aggressive selling has taken place in the futures markets as speculators booked profits following the mid-week rally.
Bybit leads the sale
According to the Futures Cumulative Volume Delta (CVD), which tracks total buying and selling pressure, OKX and Bybit had fallen sharply into negative territory. This meant that users on both exchanges were selling the token aggressively.
However, Binance’s CVD also declined but remained non-negative, highlighting quiet pressure. If the CVD turns positive again, this could signal a likely rebound for STABLE.
Source: Bike
Overall, the recent price rally was likely fueled by Tether’s USAT debut. However, this momentum did not last. Following the FOMC meeting, a broader trend of risk aversion emerged, which ultimately derailed the uptrend.
The market will now focus on the upcoming network upgrade to see if it will boost the markets.
Final Thoughts
- STABLE price rose nearly 50%, but erased most of those gains after the FOMC risk-off decision.
- It is unclear whether the network upgrade scheduled for February 4 will trigger a bull run again.
