The price of STX surged ahead of the SIP-031 vote: New momentum for the bounce back trend.

Stacks (STX) continues to assert its recovery momentum with a third consecutive increase, recording an impressive bounce back of 10% on the day as of the time of writing on Wednesday. The main driving force may come from the proposed improvement SIP-031 – the plan to upgrade network infrastructure – which is expected to be put to a vote today. This event seems to have instilled confidence in investors, boosting the upward trend for the week. At the same time, the derivatives market also clearly reflects this excitement, with open contracts (OI) soaring – a signal indicating that price expectations will continue to rise in the near future.

Start voting for SIP-031 of Stacks

In a recent post, Stacks announced that the voting process for the SIP-031 upgrade proposal will officially begin on June 25, expected to take place at Bitcoin block number 902,677 and last for two weeks, ending on July 9. The proposal will be approved if it receives support from 80 million STX staked — equivalent to 80% of the total amount of STX participating in staking.

If approved, SIP-031 will pave the way for the establishment of an ecosystem fund - a model that is being successfully applied by blockchain networks such as Sui, Avalanche, and Near Protocol. At the same time, the proposal will also increase the annual issuance rate of Stacks from 3.52% to 5.75% over the next 5 years. This fund is designed to provide essential capital for ecosystem development activities such as reward programs, liquidity support, and marketing campaigns.

Optimism increases around Stacks in the context of proposal voting

Data from Coinglass shows that investor confidence is increasingly solidifying, as the open contract (OI) surged by 17%, reaching a milestone of 66.27 million USD. This is a signal that capital is returning to the market, as increased buying pressure often leads to a strong uptrend in OI.

Alongside that, the funding rate calculated based on OI remained steady at 0.0099% throughout May, reflecting the stability of buying pressure. The maintenance of the funding rate at a positive level indicates that the bulls are willing to pay extra fees to balance between the spot price and the swap price – a clear sign that optimistic sentiment is prevailing in the market.

The derivative data of STX | Source: Coinglass## The upward trend of Stacks continues towards the monthly peak

STX continues to maintain an impressive performance with a 10% increase in Wednesday's trading session, bringing the total increase for the week to 30%. The bounce back started from the support area around the $0.50 mark – marked by the green band on the daily chart – and STX has strongly broken through last week's peak at $0.725.

Currently, the upward trend is heading towards the nearest resistance zone, located at the monthly peak of $0.802. If STX can close above this level, the bullish momentum is likely to continue pushing the price close to the important psychological level of $1.

Daily STX/USDT Chart | Source: TradingViewTechnical signals are also reinforcing the positive trend: the MACD indicator has just recorded a bullish crossover between the MACD line and the signal line, while the green histogram bars have crossed above the 0 line – sending a clear buy signal for traders on the sidelines.

The RSI index currently stands at 53 and has risen above the neutral line, indicating that buying pressure is gradually gaining dominance.

However, if STX cannot maintain a positive closing price during the day, the risk of a decline back to the support area of $0.50 still exists – meaning that the entire price increase achieved during the week could be wiped out.

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