As Bitcoin (BTC) corrects to its lowest levels in over two months below $60,000, its largest layer-2 scaling blockchain Stacks (STX) is also in decline, with the Stacks price hitting its lowest levels since mid-February below $2.0.
The Stacks price has since bounced back to around $2.14, with STX now flat on the day.
But it might not be long until STX breaks more forcefully to the downside of $2.06 and the $2.0 level.
That’s because Stacks largely takes it cue from what Bitcoin is doing, as well as how altcoins are performing.
And, as of now, pretty much the entire crypto space in a state of bearishness.
Spot Bitcoin ETF flows have been negative now for five days, as per data presented by The Block.
That’s not surprising given recent macro headwinds. While today’s Fed policy announcement didn’t contain any surprises, it reinforced the message that rate cuts remain some way off.
The Fed has turned more hawkish recently due to inflation remaining uncomfortably high since the start of 2024.
It’s no surprise then that the Bitcoin price, as well as altcoin markets, have suffered a correction.
Here’s Where the Stacks Price Is Headed Next
So, risks seem tilted to the downside for Stacks (STX). The next major support level, assuming the January highs at $2.06 goes, is the 200DMA.
The 200DMA currently resides just above $1.80. A break below here would send a significant bearish signal.
The next major area of support that traders would target would be around $1.25.
If Stacks was to fall 40% to here, its market cap would subside to under $2 billion.
This could be a great time to load up on STX, which remains a major leader in Bitcoin layer-2 scaling.
Amid the bearish outlook for altcoins like Stacks, traders are hunting for alternatives that could deliver near-term upside.
Presale investing is an often-overlooked strategy that can deliver strong returns.
And one presale has caught the attention of analysts at Cryptonews – Mega Dice.
The well-established crypto casino just launched a presale of its utility token DICE.
DICE holders get big cashback benefits on their wagers and can also generate passive income via DICE staking.
The crypto casino is also running a $750,000 airdrop to reward early presale investors.
🚨 Don’t Miss Out! Join the $DICE Airdrop and Earn Your Share of a $750,000! 🚨
Learn how below ⬇️ pic.twitter.com/OqbkcWR2LL
— Mega Dice Casino (@megadice) April 30, 2024
The project has already raised $660,000. And potential investors better move quickly, as when the $1 million milestone is hit, the DICE price will rise.
Check Out Mega Dice Casino’s Presale
Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
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