The Stacks protocol is a layer-2 scaling solution designed to enable smart-contract protocol on the Bitcoin network.
The developers of Stacks have also developed the native token for a platform that is known as STX.
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However, recently STX is making the headlines due to the decline in its price on Monday, after seeing a massive increase in its price on Sunday.
The STX/USD pair was trading at approximately $0.5750 on Monday at the press time. This accounts for an 8% plunge in the price of tokens for Monday.
Furthermore, over the past 24 hours, the price of the token has declined by 30%. Despite the fact that the price of STX has declined on Monday as compared to Sunday.
But even at this mark, the price of cryptocurrency is 180% higher than it was the previous year.
The recent gigantic surge in the price appeared on Sunday when STX has seen its price go up the way by 62%.
Is It the Right Time to Invest in STX?
Experts are thoroughly studying the price pattern of STX. The recent ups and downs have created interesting patterns.
The recent increase in its value has caused it to outperform all of its significant averages, which are located within the range of upper $0.20s to lower $0.30s.
The latest surge indicates a significant shift from the bearish trend that persisted since the end of 2021.
Experts on the other hand see things differently. Experts attribute the recent surge to the increasing popularity of non-fungible tokens.
Recently those NFTs that are centered on Bitcoin are seeing an increase in their demand.
Last year’s introduction of the Ordinal protocol has resulted in significant triumph.
The Ordinal protocol enables users to mint NFTs and directly submit those NFTs into the Bitcoin blockchain.
As per an article on Yahoo Finance, since the launch of the Ordinal protocol more than 100,000 Ordinal NFTs have been created and added to the Bitcoin blockchain.
Some people are also arguing that the reason Stacks is so high is that it can allow users to mint NFTs at a much cheaper price than the Ordinal protocol.
Stack connection with the Bitcoin blockchain continues to be advantageous for Stacks.
If the Stacks ecosystem continues to improve and the value of Bitcoin keeps increasing, it could lead to further growth.
As Bitcoin is perfectly on its way to increasing its all 8 months high price, if this happens the price of STX will also increase.
What will be The Price of STX Tokens in the Future?
As of now, there are not many levels of resistance for STX. STX is aiming at only a single level of resistance that is around $1.
If the token managed to touch this mark, then it will soon reach the $2K mark. But in order for this to happen Bitcoin (BTC) has to touch the $25k mark.
Despite the fact that STX is one of the least-known cryptocurrencies, it has great potential for giving strong returns.
Currently, there has been a lot of talk about whether it’s the right time to buy STX or not. Experts seem to have diverse opinions on that.
Some experts are saying that the next level of resistance for the token is at $1 and some believe that soon its price can go up by $1.10.
In case the token managed to touch the $1.10 mark this would give a 90% surge in the price of the token.
On the flip side, investors are also careful about fear of missing out this is not a healthy sentiment at all.
When a particular asset experiences a significant increase in value, some investors who are anxious about missing out on potential gains avoid investing in that asset.
This deliberate snub is also known as FOMO. So, it is important that investors should actively look for the price performance of any cryptocurrency before investing in it.
As far as the price of STX is concerned the token has the potential to return massive gains to investors.