The Stacks price has bounced back in the past few days. The STX token rose to a high of $2.5, which was about 36% above the lowest level this month. This brings its total market capitalization to more than $2.9 billion, making it the 60th biggest cryptocurrency in the world.
Stacks is a blockchain project that is relatively similar to other Ethereum-killers like Avalanche and Solana.
Its biggest difference is that it is attempting to solve some of the biggest challenges that Bitcoin has. Because Bitcoin does not have smart contract features, it is impossible for developers to build applications with it. If it did, the platform would have more uses than it currently has.
Therefore, Stacks is attempting to solve this challenge by creating a platform where developers can build DeFi and Non-Fungible Token (NFT) platforms that are implemented in Bitcoin.
It has also introduced a method where people can earn Bitcoin by staking their STX tokens. They earn Bitcoin that miners transfer as part of the Proof of Transfer mechanism. The Stacks price has rallied recently because more people have moved to its platform to trade NFTs.
The four-hour chart shows that the Stacks price declined and found important support at $1.7835. The coin struggled to move below this level several times in October and November. Before that, the coin struggled to move above the same level in September.
Now, the 25-day and 50-day moving averages have made a bullish crossover pattern. It has also moved above the neckline of the inverted head and shoulders pattern.
The Relative Strength Index (RSI) indicator has been in a strong bullish trend. It is actually at the overbought level of about 80.
Therefore, I suspect that the coin will keep rising as bulls attempt to move above the all-time high of $2.7990. This price is about 25% above the current level. However, a drop below the key support at $2.1 will invalidate the bullish trend.
This post was last modified on Nov 08, 2021, 12:01 GMT 12:01