Stacks (STX) Shines With 50% Weekly Gains While Market Drops

Stacks is a Bitcoin-adjacent blockchain, and STX is the native token powering it. The network was launched on Bitcoin in 2017 to enable developers to build and launch smart contracts secured by the host blockchain. 

As the NFTs on the network keeps growing, the native token STX has seen increased usage and price growth. Stacks STX, is recording a whopping 24.76% in its 24-hour price gain and 58.82% in weekly gain. The most impressive is STX trading volume which has spiked by 94.56% pushing its market cap up by 21.07%.

Let’s consider some events taking place on the network now and how STX might move in the next few days. 

STX Price Trend In 2023

STX entered the New Year at $0.20 on January 1. It maintained that level until January 24, when it recorded an intraday high of $0.30 before continuing its former trend. Then on February 3, STX closed the market at $0.30 and started an uptrend but couldn’t sustain it.

By February 9, STX went back to the $0.20 price level and continued until regaining its $0.30 on February 14. But by February 19, the token spiked to $0.64 and has continued growing until currently at $0.95 today, February 27. 

STX Price Chart Today

STX is in an uptrend today, trading at $0.9203, a significant jump from yesterday’s closing price of $0.7822. The uptrend started on February 17, with the asset posting higher highs to date. The 50-day Simple Moving Average (SMA) has moved above the 200-day SMA, a bullish signal.

Also, STX is trading above its 50-day and 200-day SMAs, which indicates short and long-term bullish sentiments for the asset. Stacks has experienced three consecutive green days on the chart and is finally set to attain the $1 price level in 2023.

STX Relative Strength Index (RSI) indicator is at 83.55, firmly in the overbought region above 70. It indicates strong pressure from the bulls. STX’s Moving Average Convergence/Divergence (MACD) is also bullish and above its signal line. It shows divergence, and the histogram bar for today shows that the bullish energy is strong.

Stacks’ support levels are $0.6784, $0.7047, and $0.7428; and resistance levels are $0.8072, $0.8336, and $0.8717. The token will likely increase to $1 in the next few days if the current momentum were to continue, although a price pullback may occur.

Notable Events on Stacks Network Capable Of Sustaining Rally

Notably, one of the recent events fuelling the token price is the hype around Bitcoin-based NFTs. 

Ordinals protocol is the protocol on Bitcoin supporting NFT developers to store them on the host blockchain. According to Dune analytics data, since the launch of Ordinals, the network has recorded almost 178,000 Bitcoin Ordinals inscriptions, increasing network activities and spiking STX prices. 

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The second notable event pushing STX price is the upcoming upgrade slated for March 2023. 

According to the Stacks Foundation announcement, this upgrade to Stacks 2.1 will strengthen the network’s connection to Bitcoin.