Is it too late to buy stacks? Crypto experts give their STX price predictions
STX, the cryptocurrency that powers the Stacks protocol, a layer-2 scaling solution built on top of Bitcoin that aims to bring smart contract programmability to the Bitcoin ecosystem, is pulling back on Monday after seeing a big pump on Sunday. STX/USD last changed hands around $0.5750, down around 8% on the day and down around 30% compared to the nine-month highs it hit earlier in the session in the $0.84 range.
However, after Sunday’s massive 62% pump, the cryptocurrency is still trading higher by close to 180% on the year. The recent surge has left all the major averages, all of which are in the upper-$0.20s to lower-$0.30s range, in the dust. The recent pump marks a decisive breakout from the bear market that had dominated since late 2021.
Analysts put the recent pump down to the strengthening narrative of non-fungible tokens (NFTs) existing in a Bitcoin-centric cryptocurrency ecosystem. The launch of the Ordinal protocol last year, which allows users to mint NFTs directly on the Bitcoin blockchain, has proven to be a huge success – according to a Yahoo Finance article, over 100,000 Ordinal NFTs have now been minted directly on Bitcoin – the blockchain.
The rise in popularity of Ordinals seems to increase the popularity of Bitcoin scaling solutions, such as Stacks, which can offer users a cheaper and more efficient way to mint NFTs within the Bitcoin ecosystem. Stacks still benefits from the underlying security of the Bitcoin blockchain, after all, even though NFTs minted via various NFT marketplace protocols that run on the Stacks protocol, such as Gamma.io, are not minted directly on the Bitcoin blockchain like Ordinals.
According to DappRadar, Gamma.io NFT trading volume has increased in the past month, jumping 1000% (11x). Should the Stacks ecosystem continue to strengthen and the price of Bitcoin continue to rise – BTC is currently threatening a breakout to new eight-month highs above $25,000 – then STX could continue to see impressive gains in the weeks and months ahead.
There are no significant resistance levels now until around $1.0 per token. A break above here could open the door to a quick wave towards the key long-term balance range of $1.7-90.
For those interested in learning more about Stacks, check out this thread by the protocol’s co-creator, who goes by the Twitter handle of @muneeb.
Crypto experts give their STX price predictions
According to analysis by popular crypto-focused YouTuber Jacob Crypto Bury, if STX can fund support at current levels and muster another pump, he would aim for a test of the $0.96 area. Bury added that $1.10 is a realistic target for the coin, which could mark a 90% increase from current levels.
Is it too late to buy stacks (STX)?
When investors start asking themselves if it is “too late” to buy an asset, it suggests that an element of “Fear Of Missing Out” (FOMO) is creeping into their mindset. This is a dangerous emotional state to be in. When an asset has rallied hard, investors feel FOMO and may throw caution to the wind and abandon their usual research and due diligence in favor of “monkeying” into an investment.
Investors should always try to keep their heads. They should stick to their usual analytical process to determine whether an investment offers a good risk reward or not. Instead of asking if it’s “too late” to buy an asset, they should instead think about an asset’s long-term price performance prospects. If they believe the asset’s prospects are good, they should consider investing. Investors should remember that past performance is not indicative of future performance – if an asset has pumped, it does not mean that the pump will continue indefinitely.
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