Famous venture capitalist Tim Draper believes that applications built on Bitcoin will perform similar to the performance of Microsoft applications during the internet boom. In this context, Draper says he is excited about Stacks Network (STX). Following a series of positive comments from the legendary investor, the altcoin took flight in the calm market.
Words of praise to Stacks from the legendary investor!
Stacks is a layer 2 network designed to enable smart contracts on Bitcoin (BTC). The altcoin was first distributed through a US Securities and Exchange Commission (SEC) qualified token offering in 2019. “I’m really excited about Stacks,” famed venture capitalist Tim Draper said in an interview. Draper also made the following statement:
Most of the things I invested in were things that started moving important applications to Bitcoin. So I think this is a really interesting trend and we think it’s going to go the way Microsoft has.
Draper said earlier this year that he expected Bitcoin to rise to $250,000 by 2025. Stacks has gained prominence throughout the year following the emergence of Bitcoin-based NFT projects such as Ordinals. According to DefiLlama, the amount of capital locked in Stacks has increased from $7 million to $50 million since the beginning of the year. The token, which started the year trading at $0.21, is currently at $1.53. Thus, the altcoin reached its highest level since February 2022. STX rose nearly 29% on the day following Draper’s laudatory comments.
STX price analysis: Is $2 next for the altcoin?
Crypto analyst Sahil Mahadik sees more potential in STX’s technical picture. According to the analyst, high momentum buying for STX hints at a rise to $2. Stacks (STX) price finally witnessed a significant entry by breaking the resistance trend line on December 4, after spending a long period of 21 months in a restrictive triangle formation. This period was characterized by the price moving between two converging lines. He also cited a lack of clear direction.
However, a recent breakout of this pattern indicates a significant shift in market sentiment. This likely marks the beginning of a directional rally. After a minor retest, STX price maintained a position above the $0.87 mark. It also recorded a remarkable growth of 62% in a week. Moreover, the altcoin saw a 136% rise on its monthly chart.
This rally coincides with an increase in network activity, especially with the increased minting of STX20 inscriptions. Currently trading at $1.53, STX price broke through the $1.3 resistance level, setting potential targets at $1.56, $1.93, and eventually $2.4. A steep rise at the upper limit of the Bollinger band indicators indicates that buyers are dominating the asset.
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