The price of Stacks (STX / USD) skyrocketed over the weekend as investors applauded the rapid growth of non-fungible tokens (NFTs) based on Bitcoin technology. The STX price rose to a high of $ 2.6700, which was its highest level since April this year. This rally raised its total market capitalization to over $ 2.6 billion, making it the 56th largest cryptocurrency in the world.
Bitcoin’s NFTs Gain Traction
Stacks is a blockchain project based on the belief that Bitcoin can perform better in the decentralized industry. Unlike Bitcoin, Stacks has smart contract features that allow developers to create decentralized applications such as DeFi and NFT.
Looking for quick news, tips, and market analysis? Sign up for the Invezz newsletter today.
Transactions in the Stacks ecosystem are settled in Bitcoin, which makes them relatively attractive to enthusiasts. This is notable since most of the NFTs that exist today are created using the Ethereum blockchain. Last week, 12-year-old Abraham Finley sold an NFT collection worth about $ 8,000 at Stacks.
At the same time, the developers announced that Satoshibles would be coming home and were leveraging Stacks to go from Ethereum to Bitcoin. The Satoshibles are a collection of 5,000 algorithmically generated NFT collectibles.
Still, Stacks has a great fight ahead of him to emerge as a leading player in the industry. For one thing, Ethereum is in a prime position in the industry. Most of the NFT projects that exist today have been built using Ethereum technology. At the same time, many future projects like Polygon and Solana are gaining market share in the industry.
Meanwhile, STX price is challenged to maintain its bullish momentum as the Fear of Missing (FOMO) momentum fades. Historically, cryptocurrencies that have parabolic bullish movements tend to liquidate soon after. For example, the price of Shiba Inu has plunged more than 28% from its highest level last week.
STX price prediction
The price of STX has risen considerably in recent weeks. The price of Stacks is up more than 100% from its lowest level in October. As it rallied, it was moving above the key resistance level at $ 1.7831, which was the previous high. It was also the neckline of the inverted head and shoulders pattern. The price is also slightly above the 25- and 50-day moving averages (MA).
Therefore, a breakout and retest pattern is likely to occur, where the price returns to key support at $ 1.7830 and then resumes the uptrend.
Invest in cryptocurrencies, stocks, ETFs, and more, in minutes with our preferred broker, eToro
67% of retail CFD accounts lose money