Stacks price prediction: STX is slowly forming a double-top pattern
The Stacks price is wavering on Wednesday as investors assess its recent rally. The STX price is trading at $2.1710, which is a few points below its intraday high of $2.4313. It has rallied by more than 97% this month, becoming one of the best performing cryptocurrencies in October. As a result, its total market capitalization has jumped to more than $2.8 billion.
What is Stacks and what does it do?
Stacks is a relatively newer blockchain project whose goal is to make Bitcoin mainstream. The network solves some of the biggest challenges that Bitcoin faces. For one, Bitcoin does not have smart contract features, meaning that it is almost impossible to build decentralised applications using its technology.
Stacks has solved some of these challenges by creating a blockchain project with smart contracts technology. The network is then connected to Bitcoin’s technology, which ensures that platforms built into it are safe. Therefore, developers can build any type of decentralised application (DAPP) like exchanges, games, and even Non-Fungible Tokens (NFT).
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The STX token is the native coin for Stacks ecosystem. It is used to secure the network and holders can make money by staking it. As a reward for staking STX, users are rewarded by earning Bitcoin that miners transfer as part of the Proof of Transfer technology.
The Stacks price has risen substantially recently because of the renewed interest in NFTs built using its technology. For example, last week, a 12-year old sold a Bitcoin bird NFT in less than 1 hour for about $8,000. Within a few days, the NFT collection sold for about $21,000.
Still, Stacks has a long way to go considering that Ethereum dominates the NFT industry. Other fast-growing platforms like Avalanche and Polygon are also seeing a significant increase in demand for their NFTs.
Stacks price prediction
The four-hour chart shows that the Stacks price has been in a strong rally recently. This rally pushed its price to an all-time high of $2.6615. As its price rose, the coin managed to move above the key resistance at $1.7835, which was its previous high. In the past trading sessions, however, the coin has found some resistance and the bullish momentum has faded.
Therefore, there is a likelihood that the STX price will keep rising as bulls target the all-time high of $2.6615. This will be part of the formation of a double-top pattern, which is usually a bearish signal.