Stacks (STX) Price Estimate September 2024 – Rise or Fall?

The cryptocurrency market has regained momentum, with Bitcoin’s price surging more than 4% in the past 24 hours, surpassing the $64,000 mark for the first time since early August. This positive trend has also benefited Stacks (STX), which saw a nearly 30% increase since August 20, 2024.

However, predicting the exact direction of Stacks (STX) in September 2024 is challenging due to its volatile nature but general market sentiment, influenced by news, events, and social media trends, will impact price. Positive sentiment could drive prices up, while negative sentiment could cause them to fall. So where is the price of Stacks (STX) going next, and what can we expect from September 2024?

Today, Crypto Lists will discuss Stacks (STX) price estimates from a technical and fundamental analysis perspective. Please note that there are also many other factors to consider when entering a position, such as your time horizon, willingness to risk, and how much margin you have if trading with leverage.

The Internet should not be decentralized

Stacks (STX) is the cryptocurrency of the decentralized computing platform Blockstack that leverages blockchain tech to build on top of Bitcoin, acting as a second-layer protocol. Essentially, it enhances Bitcoin’s functionality by enabling things like smart contracts and decentralized apps (dApps) without changing the Bitcoin network itself.

The philosophy behind this project comes from a feeling held by some that the internet is not the decentralized means of exchange it could be and that big players like Google and Facebook have too much power over ordinary users. Because of this, Blockstack aims to design online architecture in such a way that companies “can’t be evil” – a motto the developers adopted and even pasted onto a billboard across the road from Google’s California headquarters.

Blockstack enables users to completely own and control their personal data; the network applications that use the data are run locally on the user’s browser. With Blockstack, users do not have to upload data to an external site, like Facebook, or to an application, like WhatsApp. However, they can still share their data and media feeds with friends and other users.

This is achieved using decentralized applications that run locally on the user’s browser, and users continue to own their data (text, images, videos, files, etc.). Content sharing on the Blockstack network is done securely through encrypted channels while the network supports cryptocurrencies like Bitcoin and other cryptocurrencies, enabling peer-to-peer (P2P) transfers, as well as payments for downloads, subscriptions, and more.

It is important to say that Blockstack is the first company that received approval from the Securities and Exchange Commission (SEC) to sell its digital tokens STX in an initial coin offering (ICO) in 2019. Blockstack’s IPO raised $23 million under the SEC’s Regulation A+ exemption but at that time, U.S. investors weren’t able to trade these tokens on U.S. exchanges.

General market sentiment is an important factor that influences STX’s price

With the launch of Blockstack’s Stacks Blockchain 2.0 on January 14, 2021, U.S. investors were allowed to trade STX tokens on U.S. digital asset exchanges. Since the Blockstack network is no longer controlled by a single entity, STX tokens are no longer classified as securities under SEC regulations. What gives Stacks value is the fact that miners can commit Bitcoin (BTC) to create new Stacks (STX) tokens, while STX holders have the option to “stack” their tokens, allowing them to earn Bitcoin rewards in return.

How profitable the mining system will prove for miners in the future remains to be seen and will depend on a lot of factors – the primary among which is the relative price of STX vs BTC. While STX has seen impressive price gains at the beginning of 2024, its long-term value will ultimately hinge on the adoption of the Blockstack platform and the continued expansion of Clarity-powered smart contracts.

If this growth slows down, STX’s price might drop significantly, potentially to a level where miners aren’t willing to trade their BTC for Stacks tokens anymore. This would be a big issue because smart contract developers need STX tokens to deploy their contracts on the blockchain, and users need them to cover gas fees when running those contracts. At the same time, a general market sentiment is also an important factor that influences STX’s price and the wider dynamics of the cryptocurrency market continue to play an important role in determining the price of STX.

Technical analysis for Stacks (STX)

Stacks (STX) has advanced from $1.05 to $1.84 since August 05, 2024, and the current price stands at $1.83. The increase in the price can be attributed to several factors, with the most significant being a shift in traders’ sentiment from negative to positive. However, as long the price of STX is below the resistance which I marked on the chart below, the risk of another decline still persists.

Important support & resistance levels for Stacks (STX)

On this chart (the period from January 2024), I marked important support and resistance levels that can help traders understand where the price could move. STX has rebounded from its recent lows and if the price advances above $2, the next target could be an important resistance level at $2.50. The strong support level is $1.50, and if the price breaks this level, it would be a “SELL” signal, and we have the open way to $1.

What speaks for the rise in the Stacks (STX) price

General market sentiment is an important factor that influences STX’s price but positive news, partnerships, and developments related to Blockstack can attract investors and traders, pushing the price up. Analysts and traders often closely watch the activity of crypto whales because the behavior of crypto whales can influence market sentiment and an increase in the number of big transactions for STX is something that could drive the price higher. When a whale makes a substantial buy, it can be seen as a bullish sign, potentially attracting more buyers. For the bulls to remain in control of price movement, a move above $2 would be beneficial.

What indicates the downfall of Stacks (STX)

Stacks (STX) is an unpredictable investment, and because of this, investors should continue to be very cautious in the case of this cryptocurrency. STX is known for its significant price swings but the value of STX is tied to the adoption and usage of this project. Fluctuations in how widely its services are adopted by developers and decentralized applications can affect its price. This project operates in a competitive space with other projects offering similar data indexing and querying services and new innovations or competitive advancements can impact STX’s market position.

What do analysts and experts say?

The cryptocurrency market has regained its momentum, with Bitcoin’s price climbing over 4% in the past 24 hours and exceeding $64,000 for the first time since early August. This upward trend has also positively impacted Stacks (STX), which has surged nearly 30% since August 20, 2024. Some crypto analysts say that the fact that crypto whales have increased their interest in accumulating more STX indicates that we could see even higher prices for STX in the upcoming weeks. However, crypto analysts also agree that STX is a risky investment, and its price can fluctuate dramatically over short periods, leading to substantial gains or losses for investors.

Therefore, investing in Stacks (STX) should be approached with careful consideration. Conducting thorough research and assessing one’s risk tolerance are essential steps before making any investments in this space. In the upcoming weeks, the price of STX will continue to be notably impacted by the general situation in the cryptocurrency market, as well as concerns about a potential economic downturn, increasing global tensions, and the proactive monetary strategies of leading central banks.