• The price of Stacks (STX) has been fluctuating in the past few weeks due to increased interest in Ordinals and whales loading up on STX.
• STX is down 4% in the past 24 hours, erasing weekly gains from key price bursts and cutting monthly gains to -15%.
• Bitcoin activity and potential price uptick are likely major catalysts of upside momentum for STX, though technical analysis suggests further downside may be on the way.
Overview
The price of Stacks (STX) has been fluctuating significantly in the last few weeks due to increased interest in Ordinals and whales loading up on STX. Despite a surge earlier this week following the US Federal Reserve’s interest rate hike, it’s now down 4% in the past 24 hours, erasing weekly gains from key price bursts and cutting monthly gains to -15%. Looking ahead, Bitcoin activity and potential price uptick are likely major catalysts of upside momentum for STX; however, technical analysis suggests further downside may be on the way.
What is Stacks?
Stacks (STX) is a digital asset that brings the power of smart contracts to Bitcoin. It has recently seen considerable fluctuations in its prices due to hype around Ordinals, which are crypto assets similar to NFTs.
Recent Price Action
On Wednesday, STX traded as high as $0.82 after surging double digits alongside Bitcoin (BTC), following an upward reaction to the US Federal Reserve’s interest rate hike. However, it’s since dropped 4% in 24 hours and cut weekly gains to just 5%, wiping out earlier gains from key price bursts in April. Currently trading near $0.78 with a key supply zone near $1.00, Stacks is down nearly 15% over the past 30 days on the monthly chart after today’s declines wiped out previous year-to-date highs above $1.32 .
Catalyst for Upside Momentum
Despite recent decline, there appears to still be strong interest in Ordinals as CoinJournal reported that usage had reached over 3.5 million this week. Blockchain activity on layer 2s like Ordinals Protocol could lead to an increase in demand for Stacks tokens as well as an increase in BTC prices which could act as a catalyst for upside momentum for STX/USD pairings going forward.
Technical Outlook
Looking at the technical outlook for Stacks it appears that there is robust support at $0.64 with resistance near $1.33 since February 20th when it made higher low moves trading back up towards $0.82 levels before retracing again today . As long as support remains near these levels then there should be room for further upside movements but any breakdown below these levels could indicate further downward pressure ahead so traders should remain vigilant when monitoring future market movements .