Stacks News: Is It Time to Sell STX? Market Signals Point to Downtrend

Stacks News: Is It Time to Sell STX? Market Signals Point to Downtrend

Bitcoin (BTC) continues to trade sideways, lacking any clear directional movement. This uncertainty is compounded by revised jobs data showing that the U.S. added 818,000 fewer jobs than previously reported, potentially heightening investor fears. Additionally, elevated interest rates and the threat of a looming recession in the U.S. could further undermine risk assets such as stocks and cryptocurrencies. In light of these developments, investors might want to assess which altcoins to sell if Bitcoin’s price declines, potentially triggering broader market drops.

The Fear and Greed Index currently indicates a “fear” sentiment within the crypto market, reflecting growing unease among investors.

Altcoins to Consider Selling

Stacks (STX)

Stacks is the most prominent Bitcoin layer-2 protocol, with a market cap of $2.25 billion according to CoinGecko data. Although STX has seen a 2.2% increase in the last 24 hours and a 1.6% gain over the past week, it has also experienced an 18% decline over the past 30 days, mirroring the overall downtrend in the cryptocurrency market since July.

Stacks (STX) is a layer-1 blockchain that enhances Bitcoin’s functionality by enabling smart contracts and decentralized applications. It leverages Bitcoin’s security and decentralization to offer a programmable layer, with its own consensus mechanism and smart contract language. This allows developers to create new applications on top of Bitcoin, potentially expanding its use cases and adding value to the ecosystem.

Given that STX often follows Bitcoin’s price movements, investors might consider selling if Bitcoin drops toward $25,000. The downside risks could increase if Stacks falls below the $1.40 and $1.25 support levels.

Technical analysis suggests that Stacks could break out from a triangle pattern on the four-hour chart. However, the MACD contradicts this bullish outlook, with near-term confluence support forming at $1.47, supported by the 20-day EMA and the 100-day EMA.

ORDI

ORDI, the leading BRC token on Bitcoin, has maintained its upward trajectory after holding support at $20 in early August. Although it encountered resistance at $30, bullish sentiment remains strong, with recent momentum targeting the next significant resistance at $40.

Traders should look for support above $30 before increasing their exposure to ORDI this week. Additionally, close monitoring of Bitcoin’s performance is essential to avoid potential bull traps.

ORDI is a crypto protocol that introduces unique functionality to the Bitcoin network, primarily used as a store of value. Unlike conventional tokens that rely on external blockchains, ORDI is built directly on the Bitcoin blockchain, leveraging its inherent security and decentralization.

Merlin Chain (MERL)

Merlin Chain appears to be on the cusp of a major breakout, but its close ties to Bitcoin could pose unexpected risks, complicating its recovery process. The token currently holds above two key levels: the 20-day EMA at $0.2216 and the 50-day EMA at $0.2234. If the bulls can maintain momentum and push the price above the $0.23 resistance, MERL could smoothly advance to $0.25 and $0.30.

However, despite its potential, Merlin Chain remains vulnerable until it breaks above the 200-day EMA. A significant sell-off could occur if the token falls below the critical ascending trend line support. If Bitcoin’s price downturn continues toward $25,000, it may accelerate MERL’s downtrend, with potential targets at $0.22 and $0.18 support levels.

Conclusion

While considering which altcoins to sell in response to Bitcoin’s price trends, it’s equally important to explore opportunities in select altcoins that could help investors manage risk and potentially yield gains as the year progresses. Nonetheless, further research on Stacks, ORDI, and Merlin is advised to avoid getting caught on the wrong side of market movements.