- Stacks crypto price has gone parabolic amid Ordinals hype.
- The STX coin has gotten severely overbought, signaling that a pullback is likely.
Stacks price has done well in the past few days as the once-popular crypto wakes up from a deep slumber. The STX coin soared to a high of $0.8310, the highest level since May 2022. It has risen by over 46% in the past 24 hours, making it the second-best-performing coin after Conflux.
Ordinals Protocol launch
The main reason why the Stacks crypto price is surging is the recent Ordinals Protocol launch that is giving Bitcoin more utility. Ordinals is a protocol that was launched in January. It allows users to inscribe references to digital art into smart contracts on Bitcoin’s network.
NFTs launched on Ordinals are different from those that exist in Ethereum. For one, these NFTs work in such a way that they make users draw art on satoshi, the lowest denomination of Bitcoin. Ethereum NFTs, on the other hand, are analogous to the authenticity certificate from the creator. There are now over 100k such NFTs.
Read more: Top Bitcoin brokers.
This is notable for Stacks, a blockchain project that makes it possible for people to build applications that are compatible Bitcoin. Developers can also build other types of applications on Stacks. For example data compiled by DeFi Llama shows that the network has a total value locked (TVL) of more than $13 million.
At the same time, Stacks NFTs traded at Gamma.io have seen activity rise. It has jumped by over 1,000% in the past 30 days while Megapont has soared by 125%.
All these features are important because Bitcoin does not have smart contract features. As such, it is almost impossible for developers to build in its ecosystem. It has therefore lacked an ecosystem such as the one Ethereum has.
STX price outlook
Stacks price has made a strong comeback in the past few days as hopes of Bitcoin NFTs. It rose and crossed the key resistance point at $0.6447, the highest point on November 15. STX crypto price has jumped above all moving averages while the Relative Strength Index (RSI) has gotten severely overbought.
Therefore, I suspect that Stacks will have a pullback soon as investors start harvesting their profits. If this happens, the next level to watch will be at $0.50. A move above the key resistance point at $1 will signal that there are still more buyers in the market.
