The market swung in favor of Stacks (STX) because the token continued its upward momentum. As of writing, CoinGecko notes a solid 18% gain previously week because it captured the bullish momentum of the market despite the slight dip yesterday. Since then, STX has attracted more investors because it has shown strength despite the volatility.
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As STX goes up, investors and traders weigh in on the on-chain developments that occurred this week. With latest add-ons that improve each the safety and user experience on the platform, we’d see STX move up much more in the approaching weeks.
Security Improves UX On Stacks
Zest Protocol announced its latest system to enhance smart contract security on Stacks. Named Clarity Alliance, the auditing group will provide the network with higher protection against malicious actors which will exploit certain weaknesses of Stacks itself.
1/ We’re excited to share an enormous ecosystem improvement to smart contract security on the @Stacks blockchain
After working with multiple auditors for Clarity smart contract on Stacks, we saw an enormous need for a better quality auditing group.
Introducing: Clarity Alliance 👇 pic.twitter.com/ZmDedxa9bV
— Zest Protocol 🍊 (@ZestProtocol) August 21, 2024
“When Zest Protocol launched, we experienced first hand the shortcomings of the safety ecosystem around Clarity, Stacks’ smart contract language,” Zest said of their thread regarding the announcement.
Based on the thread, the Clarity Alliance is comprised of “the very best rating white hat hackers in crypto” with credentials including the auditing of Bitflow, a market aggregator on Stacks.
STX is currently trading at $1.63. Chart: TradingView
Zest also partnered with Hypernative Labs to trace incidents in addition to pinpointing possible attacks before it even happens.
$1.5-$1.6 Trading Range Holds Strong For STX
As of press time, the token entered the $1.5 to $1.6 price range with the bulls successfully slowing the bearish momentum that built up during the last couple of days. This, together with the general bullish developments on-chain, helped STX remain profitable despite the market dips that happened this week.
STX’s current position opens up possibilities not seen prior to the rally the token experienced earlier this month. With this in mind, the relative strength index of STX reveals an overall bullish narrative.
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This leaves STX the chance to carry this trading range before resuming its upward trajectory. If the token regains momentum at a shorter period, we’d see a return to $2 and more if the momentum continues. Nevertheless, its significant correlation with Bitcoin is likely to be a double-edged sword for STX.
Any market movement made by BTC, in the long term, might be amplified and felt by STX’s small market in comparison with the highest crypto. If Bitcoin suddenly flips, returning to sub-$60k levels, STX will fall potentially beneath its current trading range towards $1.2 or $1 respectively.
For now, investors and traders should monitor the overall swings of the market before making any big decision.
Featured image from Xverse, chart from TradingView