World Liberty Financial (WLF), a project tied to the Trump family, has signed a letter of intent with the Pakistan Crypto Council (PCC). According to the project, this partnership will boost blockchain development, stablecoin use, and DeFi expansion in Pakistan.
A WLF delegation recently met with Prime Minister Shehbaz Sharif, Army Chief General Asim Munir, Finance Minister Muhammad Aurangzeb, and other top officials to explore collaboration opportunities.
Pakistan is Ramping Up Crypto Developments
The Pakistani government is preparing to announce a full set of cryptocurrency regulations. This move aims to position Pakistan as one of the fastest-growing crypto hubs globally.
Last month, Binance founder Changpeng ‘CZ’ Zhao was reported to have joined the Pakistan Crypto Council as a Strategic Advisor.
Meanwhile, president Trump is seemingly using his influence to push forward the DeFi initiative linked to World Liberty Financial.
STX is today’s top performer, soaring nearly 20% in the past 24 hours. Alongside the price surge, the token’s trading volume has also spiked, signaling strong interest from investors.
However, despite the rally, on-chain data reveals a high demand for short positions among traders, suggesting doubts around the longevity of STX’s current uptrend.
Stacks (STX) Jumps 20%, But Bearish Traders Dominate
According to Coinglass, STX’s long/short ratio is currently at 0.97, signaling a preference for short positions among its futures market participants.
The long/short ratio measures the proportion of bullish (long) positions to bearish (short) positions in the market. When the ratio is above one, there are more long positions than short ones. This suggests bullish sentiment, with most traders expecting the asset’s value to rise.
Converesly, as with STX, a ratio below one indicates that more traders are betting on a price decline than on an increase. This suggests that many token holders are unimpressed by STX’s double-digit gains over the past day and anticipate a bearish reversal soon.
Moreover, STX’s overbought Relative Strength Index (RSI) supports this bearish outlook. At press time, this momentum indicator is at 74.35 and on an upward trend.
The RSI indicator measures an asset’s overbought and oversold market conditions. It ranges between 0 and 100, with values above 70 suggesting that the asset is overbought and due for a price decline. Converesly, values under 30 indicate that the asset is oversold and may witness a rebound.
Therefore, STX’s RSI reading confirms that altcoin might be overbought and could witness a price decline in the near term.
Can STX Defy Overbought Signals?
Once buyer exhaustion sets in, STX could shed some of its recent gains. In this scenario, the altcoin’s value could plunge to its year-to-date low of $0.47.
However, an RSI reading above 70 does not always signal an immediate reversal. Strong bullish momentum can sometimes sustain the rally, pushing prices even higher despite overbought conditions.
