Stacks price plunges hard after rallying 70% in a day — more STX losses ahead?
Stacks (STX) pared a considerable portion of the gains it made on March 10 as the euphoria surrounding its $165 million pledge to support Bitcoin (BTC) projects showed signs of fading.
STX's price dropped by over 30% to reach a level as low as $1.33 on Friday when measured from its week-to-date high of $1.94. The selloff, in part, appeared technical as the $1.94-top fell in the same range that served as solid support between October 2021 and January 2022, only to flip later to become a resistance area.
It also appears that traders spotted selling opportunities due to STX's long wick candlestick on March 10. Stacks rallied by as much as 73% into the day while forming a disproportionally long bullish wick on the daily chart that hinted at upside exhaustion.
The rally in the STX market on March 10 coincided with the launch of "Bitcoin Odyssey," a $165 million fund to develop Web3, decentralized finance (DeFi), and nonfungible token (NFT) projects on the Bitcoin blockchain by harnessing Stacks' open-source network for Bitcoin-based smart contracts.
Couldn't be happier to announce that we've partnered with @Okcoin and @StacksOrg to launch a $165M ecosystem fund to invest in Web3, Defi, and NFTs on Bitcoin!https://t.co/VUDyEIHn8P via @cointelegraph
Notably, STX serves as a utility token inside the Stacks ecosystem to pay for network activity and contract execution. STX owners can also stake their holdings on the Stacks network via "Stacking" to support its blockchain's consensus mechanism. In return, they earn BTC rewards.
It appears traders flocked to purchase STX en masse, anticipating a rise in its demand after the Bitcoin Odessey's launch. For instance, cryptocurrency exchange OKcoin, the main backer behind the
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