Stacks Price Is Up By 6.33% – Time To Buy STX Coin?
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The Stacks (STX) project continues to witness multiple adoptions along with an increase in price.
Nevertheless, the recent surge in STX price is not enough reason to invest in the coin. Investors need to look into the Stacks project to analyze what to expect before they decide to buy STX.
Stacks: Layer-1 Bitcoin Blockchain Solution
Stacks is a layer-1 blockchain solution aiming to bring smart contracts and decentralized apps (DApps) to Bitcoin.
Through Stacks, smart contracts can be added to Bitcoin without any barriers like security and stability.
The network uses the Proof of Work (PoW) consensus algorithm on the Bitcoin blockchain. It also uses another consensus model, known as proof-of-transfer (PoX). This model helps miners mint new STX tokens by paying in BTC.
The Stacks project was developed by Blockstack PBC, a startup founded by Muneeb Ali and Ryan Shea. Stacks was initially named Blockstack before it got rebranded in 2020. The mainnet for Stacks 2.0 was then launched in January 2021.
Stacks uses both its native asset, STX, and Bitcoin as its base currency. The STX token is used to process transactions, power the execution of smart contracts, and register new digital assets on the Stacks 2.0 blockchain.
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STX Token Continues To Surge Higher
STX has been moving upwards since it reached a low of $0.50 on June 22. The asset surged to $0.64 on June 23 and on June 24, STX rose to $0.70.
On July 8, it reached a high of $1.21 and has been rising slowly as the increasing number of buyers push the price higher. Currently, STX is trading at $1.27 and is up 6.33% in the last 24 hours.
STX is currently ranked at number 57 on the trading chart with a market cap of $1.5 billion according to CoinMarketCap.
STX’s Technical And Fundamental Analysis
Investors looking to buy STX need to look at the recent developments of the Stacks project before swooping in.
Earlier this year, Stacks launched a feature of the STX tokens called Stacking. Stacking is basically when token holders lock up their STX tokens for a certain period to earn Bitcoins as rewards.
In May, Stacks launched a Stacks Grants App to hasten and streamline the grants process of its Stacks Grants Program.
That same month, Stacks partnered with South Korean e-commerce protocol Paycoin to support transactions with STX. Through this partnership, STX users can hold STX and collect returns in Bitcoin while using the Paycoin application.
Stacks recently announced they were working with decentralized blockchain infrastructure platform InfStones to design an open-source tool for creating and managing Stacking pools.
InfStones launched its own Stacking service recently and is focusing on making Stacks more accessible to clients. However, the platform is now looking at offering more Stacking options for different types of holders.
These recent developments within the Stacks ecosystem signal a growing interest in the crypto protocol. Meanwhile, Stacks is also doing well on the weekly technical chart signaling that it might be a good time to buy STX.
The relative strength index (RSI) of the STX token implies a growing underlying bullish momentum. The RSI stands at 48.19, meaning it is above the oversold margin and below the overbought status.
STX’s 20-day and 200-day moving average (MA) are both signaling a bull run.
The asset 20-day MA support price is at $1.28, showing the token is trading on the same level. Its long-term performance on the 200-day MA shows an even lower price at $1.27.
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