- Stacks crypto price has been in a strong bullish trend in the past few weeks.
- The developers are expected to launch Stacks V2.1 in March.
- Yuga Labs will launch its Ordinals NFT collection soon.
Stacks price has made a strong recovery as investors cheer the growing ecosystem of Bitcoin dApps and Non-Fungible Tokens (NFTs). STX, its native token, jumped to a high of $1.0400, the highest point since May 4 of 2022. Data compiled by Binance shows that the coin has soared by ~420% from its lowest point in 2022.
Bitcoin Ordinals is the catalyst
The STX crypto price has soared mainly because of the recently launched Bitcoin Ordinals. In a statement on Tuesday, Yuga Labs, the creator of Bored Ape Yacht Club (BAYC) announced that it will create its own collection of Ordinals NFTs. The company’s Bitcoin NFTs will be known as TwelveFold and will have 300 limited NFTs.
Yuga Labs, valued at over $4 billion, is the most successful company in the industry. Its NFTs have sold billions of dollars while ApeCoin, its cryptocurrency, has a market cap of over $1.84 billion. Therefore, investors believe that the new NFT collection will be a success.
Read more: How to buy large amounts of Bitcoin.
Stacks is seen as the blockchain project that has the most potential if Bitcoin’s utility expands. For starters, Stacks is a blockchain protocol that makes it possible for developers to build apps that are linked to Bitcoin. It recently went through a hard fork known as Stacks 2.1, whose mainnet will go live on March 20 of this year.
The main improvements in Stacks 2.1 are strengthening the connection with Bitcoin and stacking improvements.
With Stacks, users can build applications in all industries that support Bitcoin. For example, developers like Arkadiko Finance have built USDA, a stablecoin for Bitcoin’s ecosystem. If all these projects succeed, then we will likely see more Bitcoin activity.
Stacks price prediction
The daily chart shows that the STX price has been in a strong uptrend in the past few weeks, as I wrote in this article. The coin managed to move above the important resistance level at $0.5237, the highest level on August 8.
This chart shows that Stacks has moved above all moving averages, signaling that buyers are still in control. The MACD and signal lines have continued rising while the histogram of has lost momentum. At the same time, the Relative Strength Index (RSI) has moved above the overbought level.
Most importantly, Stacks price has formed a rising wedge pattern. Therefore, there is a likelihood that the coin will have a bearish breakout in the coming days. If this happens, the coin will retreat to the support at $0.5237, which is about 46% below the current level.
