- Stacks is moving with bearish momentum and broke below the 50 DMA.
- STX bulls are currently not showing any support near the crucial levels. It has seen a drop of 2.3% intraday.
Stacks is a protocol layer that enables smart contracts and DApps (Decentralized Applications) to settle transactions on the Bitcoin blockchain. Stacks made DeFi possible for Bitcoin while unlocking over $300 billion in capital. They also enable developers to build decentralized applications on the Bitcoin Blockchain while providing a more secure and scalable platform. Bitcoin security on Stacks has helped DEXs to operate. It uses the Proof of Consensus mechanism which connects Bitcoin to the network. Stacks is also heavily bullish on the Ordinals which is a way to bring NFTs to the Bitcoin blockchain. They have a total of $1.8 billion in supply in which 75% is circulating in the market. Stacks provides 110,000 STX as a reward for staking in every slot with an average APY of 3.4%.
STX has a market cap of $1.09 billion and is ranked 47th in the crypto-verse. It has an ROI of 568%. Trading volume fell by 6% intraday. The volume-to-market cap ratio of STX suggests a consolidation in price.
Is STX Going to Hit the Next Support Level?
STX price has shown a weak downside momentum on the weekly chart. STX is currently 40% below its 90 days high but may see a reversal soon. On the daily chart, it is trading near $0.8 with a small drop in the intraday session. The upside trend of STX could halt near $1. Meanwhile, the downside trend could observe a bounceback from $0.6. It recently gave a bearish crossover from the 50 DMA which could push it to a new low in the future. Also, the asset 100 DMA is below the $0.6 mark and can act as a support in the future.
RSI of STX is near 40 suggesting its presence in the neutral zone. A weak downside slope formed suggesting bearish momentum.
Stacks is strongly supporting ordinals and is attracting investors’ attention. It saw a breakdown below the 50 DMA but can see a new high in the future.
The views and opinions stated by the author, or any people named in this article, are for informational purposes only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.