STABLE, the native token of the USDT-powered StableChain, exploded nearly 50% in the past 24 hours.
Given that StableChain is backed by Bitfinex, Tether’s liquidity layer for stablecoins USDTO and PayPal, the USAT announcement appeared 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.
What’s next for STABLE
For the unfamiliar, StableChain is part of a line of payment-focused rails that seeks to remove frictions observed in legacy blockchains like gas tokens for transfers. Other purpose-built chains for stablecoin payments include Plasma, Stripe-backed Tempo, and Circle’s Arc.
Plasma and StableChain are backed by Tether, hence the positive USAT update may have contributed to the explosive upswing.
Besides, the network is scheduled for an upgrade on the 4th of February, aiming to add new features such as gas waivers and smoother payment integrations.
Meanwhile, the STABLE token has rallied over 90% from mid-January lows, and if the positive market sentiment persists, the recent cool-off could offer new buying opportunities.
As such, if the Golden Ratio of $0.02 (61.8% Fib level) holds, the token may retest the overhead resistance at $0.032.
Otherwise, losing the Golden Ratio may push the token lower to the multi-week support trendline (blue).
That said, at the time of writing, there was aggressive selling on the Futures markets, as speculators booked profits after the mid-week rally.
Bybit leads sell-off
According to Futures Cumulative Volume Delta (CVD), which tracks total buying and selling pressure, OKX and Bybit had sharply dropped into negative territory. This meant that users on the two exchanges were aggressively selling the token.
However, Binance’s CVD also went down but remained non-negative, underscoring muted pressure. If the CVD reverts to positive, it could signal a likely rebound for STABLE.
Overall, the recent price upswing was likely fueled by Tether’s USAT debut. However, momentum did not last. Following the FOMC meeting, a broader risk‐off shift emerged, which ultimately derailed the uptrend.
The market will now focus on the upcoming network upgrade to see if it will juice the markets.
Final Thoughts
- STABLE price rallied nearly 50% but erased most of those gains after the FOMC risk-off move.
- It’s unclear whether the network upgrade scheduled for the 4th of February will ignite a bull run again.
