Stacks (STX) Drops 15% Despite Continuous On-Chain Developments – Details

Christian Encila

9 months ago

3 mins read

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Stacks struggles to stand on level ground as it continues to fall despite the market’s attempt to rebound in the short term. According to CoinGecko, STX bled 15% since last week with the token attempting to reverse the downward momentum with a nearly 4% uptick in the past 24 hours.

Stacks has been teasing the community, creating hype for the upcoming Nakamoto Upgrade with their ‘21 Days of Nakamoto’ event. The event, which commenced back on the 28th of August, started September with a whole suite of surprises for investors and community members.

NFTs And Financial Grants Back On The Menu For Stacks

On a recent X post, Megapont was revealed to be Stacks’s September 3 surprise for the celebration of the upcoming mainnet release of the Nakamoto upgrade. Megapont is an NFT project, launched and operates primarily on the Stacks blockchain.

Let’s celebrate a mega upgrade for Stacks! 🧡

And who better to celebrate with than something truly mega…

Welcome back, @MegapontNFT!
Orange List: https://t.co/fOeckrNRVH pic.twitter.com/Z46xH5g1QL

— stacks.btc (@Stacks) September 2, 2024

The project released Nakapack, a 5,000-strong NFT collection to be given out to the Stacks community. Users on the platform can mint the NFTs without a fee, but they need to be whitelisted for this to happen. Despite 95% of circulated NFTs now being deemed worthless by a recent report, Megapont’s dedication to its community might spark interest in NFTs within the Bitcoin L2 ecosystem.

STXCUSD trading at $1.51 on the 24-hour chart: TradingView.com

Another development that will support Stacks in the long term is the second cohort of grants for community-voted programs on-chain. On the thread, seven programs were featured each granted $50,000 to aid their development process. In total, over 31 programs have been given financial assistance.

$1.3-$1.6 Chokes STX’s Upside Potential

As of writing, STX is held tightly by the $1.3-$1.6 trading range, hampering the token’s upside potential shortly. This leaves the bulls in an interesting position which has the opportunity to break through the $1.7 price ceiling.

STX’s relative strength index (RSI) suggests that the token will attempt to stabilize in its current trading range which gives the bulls a much-needed platform to jump out from. However, its relatively stable level reveals that the bears still have some strength, enough to cancel the bullish momentum that’s currently forming.

In the short term, the bears will have the upper hand unless the market makes another leap forward, creating enough momentum for STX to have a breakthrough. However, the meager gains the broader market experienced have little to no effect on STX’s future performance. Fear, uncertainty, and doubt still plagues market sentiment for the token.

For now, investors and traders should exercise caution while monitoring the broader market’s movement before making a decision. STX’s significant correlation with BTC is both a boon and a curse for investors as any swing made by the latter will have a strong influence on the performance of the former.

Featured image from Host Merchant Services, chart from TradingView

Christian Encila

They say journalists never truly clock out. But for Christian, that's not just a metaphor, it's a lifestyle. By day, he navigates the ever-shifting tides of the cryptocurrency market, wielding words like a seasoned editor and crafting articles that decipher the jargon for the masses. When the PC goes on hibernate mode, however, his pursuits take a more mechanical (and sometimes philosophical) turn.

Christian's journey with the written word began long before the age of Bitcoin. In the hallowed halls of academia, he honed his craft as a feature writer for his college paper. This early love for storytelling paved the way for a successful stint as an editor at a data engineering firm, where his first-month essay win funded a months-long supply of doggie and kitty treats – a testament to his dedication to his furry companions (more on that later).

Christian then roamed the world of journalism, working at newspapers in Canada and even South Korea. He finally settled down at a local news giant in his hometown in the Philippines for a decade, becoming a total news junkie. But then, something new caught his eye: cryptocurrency. It was like a treasure hunt mixed with storytelling - right up his alley!

So, he landed a killer gig at NewsBTC, where he's one of the go-to guys for all things crypto. He breaks down this confusing stuff into bite-sized pieces, making it easy for anyone to understand (he salutes his management team for teaching him this skill).

Think Christian's all work and no play? Not a chance! When he's not at his computer, you'll find him indulging his passion for motorbikes. A true gearhead, Christian loves tinkering with his bike and savoring the joy of the open road on his 320-cc Yamaha R3. Once a speed demon who hit 120mph (a feat he vowed never to repeat), he now prefers leisurely rides along the coast, enjoying the wind in his thinning hair.

Speaking of chill, Christian's got a crew of furry friends waiting for him at home. Two cats and a dog. He swears cats are way smarter than dogs (sorry, Grizzly), but he adores them all anyway. Apparently, watching his pets just chillin’ helps him analyze and write meticulously formatted articles even better.

Here's the thing about this guy: He works a lot, but he keeps himself fueled by enough coffee to make it through the day - and some seriously delicious (Filipino) food. He says a delectable meal is the secret ingredient to a killer article. And after a long day of crypto crusading, he unwinds with some rum (mixed with milk) while watching slapstick movies.

Looking ahead, Christian sees a bright future with NewsBTC. He says he sees himself privileged to be part of an awesome organization, sharing his expertise and passion with a community he values, and fellow editors - and bosses - he deeply respects.

So, the next time you tread into the world of cryptocurrency, remember the man behind the words – the crypto crusader, the grease monkey, and the feline philosopher, all rolled into one.

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