With a market capitalization of $ 2.495 million, Stacks (STX) is ranked 57th in the CoinMarketCap ranking. If you want to know what has made this project climb so much and where it is going, stay and read this.
At the time of writing STX is trading at $ 1.98, accumulating a loss of 12.95% in the last 24 hours, but still maintaining a gain of 39.88% in the last 7 days.
What is the Stacks blockchain and its STX token for?
It is very likely that you are listening to this cryptocurrency for the first time, and this makes perfect sense as this project was renamed Stacks in the 4th quarter of 2020.
Founded in 2013, Stacks is a layer 1 blockchain solution, designed to bring smart contracts to the Bitcoin network, without having to interfere with its great security and stability.
With these smart contracts decentralized applications are built, better known as DApps, with the particularity that they are open and modular. This means that they can be built on top of applications created by others, to develop functions that are not possible in a normal application.
Stacks uses the Bitcoin network as a base layer, which means that it works on the most used and secure blockchain.
The STX token is the one used to drive the execution of smart contracts, process transactions and register new assets that want to work on this network.
NFT fever drives STX price
The reason behind the recent price hike is undoubtedly thanks to the NFTs created on the Bitcoin network.
Because the BTC network does not natively support smart contracts, the fact that Stacks is making it a reality is attracting quite a bit of attention.
Last Monday, a 12-year-old boy named Abraham Finley sold a collection of Bitcoin birds in NFT format, in a matter of an hour on the Stacks market. By Thursday it had become the NFT collection with the most transactions in Stacks, accumulating a volume of 16,651 STX.
The StackPunks market also moved quite a bit last week, trading over 620,000 STX ($ 1.3 million).
These numbers are far from the large commercial volume that networks such as Ethereum or the Binance Smart Chain have with their respective NTFs.
However, investors are quite excited about creating decentralized products backed by the Bitcoin network.
STX technical analysis and forecast
After hitting price levels not seen since April, a resistance level at $ 2.55 hampered the volatile rally, and now a sharp correction is in the works.
The setback is likely to extend further in the short term. However, the explosive bullish force is totally dominant, and sooner or later it will regain control.
The moving averages EMA of 8 and SMA of 18 are crossed to the upside and quite far from the current price. They may function as dynamic supports in the middle of a broader correction.
It is also possible that the correction is already complete, and a new momentum is about to begin in the next few hours.
In conclusion, it is not a very good idea to expect a further drop.
Chart daily STX vs USDT. Source: TradingView.
From this time frame we see that a medium / long-term momentum is developing, and it should still spread considerably further.
On this chart it appears that the hurdle is at $ 2.07. Waiting for this price level to be traversed will be a good confirmation that a new all-time high for Stacks (STX) is on the way.
Stacks Price Technical Analysis (STX) . Source: TradingView.
What do you think of this project? Will we see it scale more in the near future? Let us know your opinion in the comments!
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