The Stacks price is holding steady as demand for the coin and ecosystem rises. The STX token is trading at $2.20, which is a few points above this week’s low of $1.80. Its total market capitalization has risen to $2.4 billion, making it the 64th biggest cryptocurrency in the world.
Stacks steady after FOMC
The Stacks price has declined sharply in the past few weeks. Precisely, it has dropped by more than 35% from its highest level in November. This price action was mostly because of the overall fear that the Federal Reserve will embrace a more hawkish tone considering that the US is seeing strong inflation and relatively low unemployment rate.
Investors’ fears were confirmed on Wednesday when the Fed concluded its two-day monetary policy meeting. In it, the bank decided to embrace a more hawkish tone considering that the country’s inflation is rising.
This means that the bank will increase the size of its asset tapering to about $30 billion. The goal is to end the asset purchases by March. Most importantly, the bank will start hiking interest rates in the coming year.
Therefore, the price of Stacks and other cryptocurrencies is rallying simply because the hawkish Fed outlook was already priced in by market participants. This explains why investors have shed more than $700 billion in value in the past few weeks.
For starters, Stacks is a relatively different blockchain project. It has close similarities to other Ethereum-killers like Avalanche and Algorand. The main difference is that it helps developers build applications for Bitcoin.
It helps to solve the challenge that Bitcoin does not have a smart contract technology. As a result, it is not possible to build decentralized apps using the network. It uses a proof of transfer mechanism in order to help developers build DEFI and NFT platforms.
Stacks price prediction
The daily chart shows that the STX price has been in a bullish trend in the past few days. The coin remains above the ascending trendline that is shown in black. It has also moved slightly above the 25-day and 50-day exponential moving averages (EMA). The Relative Strength Index (RSI) is at the neutral level of 50.
Therefore, the Stacksprice will likely keep rising as bulls target the key resistance at $3. A drop below $2 will invalidate the bullish view.
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