The market swung in favor of Stacks (STX) as the token continued its upward momentum. As of writing, CoinGecko notes a solid 18% gain in the past week as it captured the bullish momentum of the market despite the slight dip yesterday. Since then, STX has attracted more investors as it has shown strength despite the volatility.
As STX goes up, investors and traders weigh in on the on-chain developments that occurred this week. With new add-ons that improve both the security and user experience on the platform, we might see STX move up even more in the coming weeks.
Security Improves UX On Stacks
Zest Protocol announced its new system to improve smart contract security on Stacks. Named Clarity Alliance, the auditing group will provide the network with better protection against malicious actors that may exploit certain weaknesses of Stacks itself.
1/ We’re excited to share a big ecosystem improvement to smart contract security on the @Stacks blockchain
After working with multiple auditors for Clarity smart contract on Stacks, we saw a big need for a higher 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 security ecosystem around Clarity, Stacks’ smart contract language,” Zest said in their thread regarding the announcement.
According to the thread, the Clarity Alliance is comprised of “the highest ranking white hat hackers in crypto” with credentials including the auditing of Bitflow, a market aggregator on Stacks.
Zest also partnered with Hypernative Labs to track incidents as well as 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 over the last couple of days. This, along with the overall 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.
This leaves STX the opportunity to hold this trading range before resuming its upward trajectory. If the token regains momentum at a shorter period, we might see a return to $2 and more if the momentum continues. However, its significant correlation with Bitcoin might be a double-edged sword for STX.
Any market movement made by BTC, in the long run, will be amplified and felt by STX’s small market compared to the top 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 general swings of the market before making any big decision.
Featured image from Xverse, chart from TradingView