- STX crypto price has been in a strong bullish trend recently.
- The gains are mostly because of the success of Bitcoin Ordinals.
Stacks crypto price continued its bullish trend this week as enthusiasm about Bitcoin Ordinals continued. STX jumped to a high of $1.097, which was about 427% above the lowest point this year. This rally brings the coin’s total market cap to over $1.2 billion, making it the 42nd biggest coin in the world.
Bitcoin Ordinals boosts STX
Stacks is a layer-1 blockchain platform that is unique from other networks like Ethereum and Solana. Its goal is to help developers build applications that use Bitcoin to handle transactions. As I wrote in this article, it solves a unique problem in that Bitcoin does not have smart contract capabilities in itself.
As such, people can leverage the popularity offered by Bitcoin to handle transactions in the ecosystem. Examples of apps that can be developed in the ecosystem are in the Decentralised Finance (DeFi), non-fungible tokens (NFT), and gaming industries. Some of the top dApps in its ecosystem are Alex, CryptoMate, and BitFlow among others.
Read more: How to buy Bitcoin in Europe.
The most important reason why Stacks price has jumped in the past few weeks is the successful launch of Bitcoin Ordinals. This is an important part of Bitcoin’s ecosystem that was launched in January. It makes it possible for people to inscribe digital content like art onto the Bitcoin ecosystem. Ordinals has become extremely popular among creators and collectors recently.
There has been other important Stacks news recently. For example, Tapbit listed STX and made it possible for people to trade STX/USDT pair. In most periods, crypto prices tend to rise after a major exchange listing.
Stacks crypto price prediction
The 4H chart shows that the STX crypto price has been in a bullish trend in the past few days. In this period, it has formed what looks like a cup and handle (C&P) pattern. This pattern, which is shown in green, is usually a sign of a bullish continuation. As such, the current retreat can be said to be part of the handle section.
However, the pattern can also be interpreted to mean a double-top whose neckline is $0.52. Stacks is being supported by the 50-period and 25-period moving averages. Therefore, because of the C&P pattern, we suspect that the coin will bounce back and retest the year-to-date high of $1.1.
However, a drop below the key support level at $0.7693 will send a signal that there are still more sellers in the market. If this happens, it will lead to more downside to $0.50.
