After a period of weakness, Stable [STABLE] finally broke out. The altcoin flipped the $0.04 resistance to a two-month high of $0.0419.
As of this writing, STABLE was trading around $0.0417 after surging by 16% on the daily charts. Over the same period, the altcoin’s market cap rose 16%, reclaiming the $1 billion mark.
Equally, trading volume reversed course after a week-long decline and started rising, rising slightly by 3%, reflecting steady capital flows.
STABLE rebounds on StableSwap and memecoin frenzy
STABLE rebounded, largely driven by the launch of StableSwap on the Stable network. According to official accounts, the native DEX on the chain went live on the 22nd of July, opening a major launchpad for other tokens.
The DEX was touted to offer deep liquidity, efficient routing, and seamless stable asset trading. Shortly after going live, network traffic skyrocketed.
According to reports, network usage soared, driven by the launch of the Fefer memecoin. The network processed over 167k transactions in 24 hours, with the memecoin surging past $11 million in market cap.
After the spike in volume, the Stable protocol initiated critical infrastructure upgrades to maintain high-velocity execution.
That’s not all, as projects started to bridge to the stable network. Some observed that Feferz launched as the first NFT on the network, while the FINNY memecoin also launched.
The token deployment significantly increased network usage, which also resulted in higher demand for the STABLE token.
Speculators join the party
With the price pump, traders rushed to position themselves, fearing they would miss out (FOMO). In fact, the altcoin’s derivatives volume climbed 158% to $38.9 million, while the Open Interest jumped 28% to $27.3 million.
The rising volume and OI indicated increased participation as traders opened new positions. At the same time, significant capital flowed into these positions.
According to CoinGlass data, Futures inflows rose to $11.7 million while outflows dropped to $10.6 million. As a result, the Futures netflow climbed 526% to $1.05 million, reflecting higher capital inflows.
Historically, speculative demand has preceded short-term price pumps.
Can the momentum hold?
STABLE pumped strongly, driven by the memecoin frenzy on the Stable chain. With this demand, the altcoin’s Relative Strength Index (RSI) formed a bullish crossover and rose to 66.
At 66, RSI showed buyers had significant hold of the market. Likewise, the Stochastic Momentum Index also formed a bullish crossover and climbed to 12, confirming the upside momentum.
Taken together, these two suggest a high demand and signal the likelihood of trend continuation. Thus, if network usage for Stable continues to rise, the altcoin will flip $0.043 and eye a move above $0.05.
On the other hand, if speculation fades, the altcoin is likely to drop sharply toward $0.035.
Final Summary
- STABLE skyrocketed 16% to a 2-month high of $0.041 amid renewed market demand.
- STABLE pumped, driven by heightened network usage, as the memecoin frenzy pushed transactions to 167k.
