- What is Stacks? A beginner’s guide.
- The price, after a fall for over a year showed some bullish sentiments
- If the price bounces back from the near support, buying action will be seen
Stacks is a layer 2 blockchain that facilitates the exchange of assets with the Bitcoin blockchain while enabling smart contracts and decentralized applications (dApps). This interoperability is achieved through a consensus technology called Proof of Transfer (POX), which connects both blockchains.
Despite being distinct blockchains, Stacks and Bitcoin work collaboratively, with Stacks connecting its system to Bitcoin to leverage the security and privacy of the Bitcoin network. It is worth noting that Stacks does not alter any of Bitcoin’s features.
The development of Stacks began in 2013 by founders Ryan Shea and Muneeb Ali. Originally known as Blockstack, the project underwent a name change in 2020. After extensive research and development, Blockstack launched an alpha version of the Blockstack browser in 2017, accompanied by a centralized data storage system.
Recent Pricing Scale of STX
After a continuous decline for a year, the price of Stacks reached a low point of $0.2090. However, during the end of December, a reversal began. In February, a significant reversal occurred as the bulls took control.
Although there was a small correction in the price until the end of February when it reached over $1, the bullish momentum quickly resumed, pushing the price close to $1.3 again in March 2023. However, from that last high in March, the coin has been experiencing a downward trend, signaling a bearish phase.
Current Predictions for STX
As of the current market situation, the price of Stacks is in proximity to the 50-day moving average (DMA) and slightly below the 200 DMA. The identified resistance levels are at $0.8220 and $0.9663, marked as Resistance 1 and Resistance 2, respectively.
On the support side, Support 1 is situated slightly higher than usual due to the level volume above, at $0.9030. However, the stronger and confirmed support is Support 2 at $0.5292.
The Relative Strength Index (RSI) indicates weak momentum with the current level at 38.99, suggesting potential buying action.
Predictions based on the RSI and support levels indicate that Support 1 may be weak in the short term and could be broken. If the price manages to surpass Resistance 1, it could result in a bullish trend as observed in the past. Alternatively, if the price reaches and bounces off Support 2, it could present an excellent buying opportunity as the coin may re-enter the consolidation zone with a margin of safety.
Conclusion
Stacks, founded in 2013, is a layer 2 blockchain with the primary goal of enabling the exchange of assets with the Bitcoin blockchain. It achieves this by implementing smart contracts and decentralized applications through the use of Proof of Transfer (POX) consensus technology.
Over the past year, the price of Stacks experienced a period of rising, but it is currently being dominated by bearish momentum. However, there is a nearby support level that may present a potential buying opportunity if the price bounces off from it.
Support levels:
Resistance levels:
RSI level:
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