- Stacks’ hype died down, leading to a demand slowdown.
- STX’s sell pressure was growing, and this could lead to a retest of key support levels.
Stacks [STX] was among the best-performing cryptocurrencies since the second week of March. However, bullish momentum faded in the last few days and was already giving way to the bears.
Is your portfolio green? Check out the Stacks Profit Calculator
STX may offer a significant opportunity for short sellers, and here’s why. Sell pressure has been swelling up after the token found resistance above the $1.25 price level.
Additionally, STX was overbought after its price spike from the second week of March. This created a psychological sell signal for most buyers, especially those who were already deep in profit.
Source: TradingView
STX extended its pullback by 13% in the last 24 hours at press time. This outcome brought its total pullback to 24.28% from its recent peak to its $1.02 at press time price.
The token may still extend its downside, just by price analysis alone. Its price peak was accompanied by a lower RSI peak as well, creating a bearish price-RSI divergence.
These STX metrics confirm an inevitable outcome
A large enough pullback may trigger more downside. Key support levels to watch out for include the $0.81, $0.71, and $0.60 price levels.
Some on-chain metrics also confirmed the current state of STX demand. For example, its volume dropped substantially between 23 – 24 March, in line with the drop in demand.
Source: Santiment
Its social dominance metric indicated an overall decline during the week as the token fell out of favor with investors. The weighted sentiment metric was at its weekly low at press time after an overall downward trend in the last seven days.
Source: Santiment
STX’s volatility also adopted a downward trajectory this week and was down to its weekly low at the time of writing.
Although the press time STX sentiment was bearish, there was still some good news. The Stacks network achieved noteworthy milestones this week, which confirmed the level of growth it has achieved so far.
Realistic or not, here’s STX market cap in BTC’s terms
Additionally, Stacks has released over 50,000 smart contracts, with roughly half a million addresses holding STX at press time. The total number of transactions on the network soared to 3.5 million this week.
Thank you for being part of this community, crushing the following milestones ?
⭐ 3,500,000 transactions
⭐ 500,000 non-zero addresses
⭐ 50,000 smart contracts deployed— stacks.btc (@Stacks) March 24, 2023
However, these milestones may not have much of an impact on STX. Its performance also reflected the overall demand slowdown in the crypto market.
