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

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.

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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.

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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