On July 25, Stacks (STX) experienced strong bearish pressure. After a long period of consolidation, the bears finally took over the market and STX lost the $0.16 support level.
As a result, the altcoin fell to $0.13. STX has not fallen to these levels since mid-2020, marking a 6-year low. As of this writing, Stacks was trading around $0.138 after falling 6.2% on the daily charts.
So why is Stacks decreasing?
STX It fell to a six-year low due to market concerns regarding the token’s label on Binance. Stack Donation He acknowledged the concern and said he was in contact with Binance to resolve the issue.
More importantly, the team suggested that the label change at Binance was likely due to the upcoming PoX-5 hardfork. That’s why the Stacks team informed the other elders.or CEX partners who have since made progress in support.
Accordingly ReubsThe tag will be removed once consensus-level changes are completed on Binance. Although the team reassured the community, the market did not respond favorably to this assurance and sentiment reversed.
What about the PoX-5 hardfork?
stacks PoX-5 hard fork It is planned to be held on July 29. This follows the successful balloting of SP 044 and SP 045 and overwhelming community support.
highly anticipated update It introduces trustless, self-custodial Bitcoin staking. Thus, the upgrade will allow users to earn BTC-weighted returns while keeping their assets under their own keys.
Three days ago the public PoX-5 testnet went live for builders to test their protocols before the mainnet.
In-chain usage remains extremely weak
Despite the launch of the public testnet and market expectations, Stacks’ on-chain activity could not continue. In fact, the network’s on-chain effectiveness continued to decline.
According to Token Terminal data, the number of daily active users dropped to 1.1 thousand. The network recorded such a low number of users in January 2026.
Declining usage indicates that the upcoming upgrade is not encouraging users to stay or attracting new users. Reduced network activity generally means reduced demand for the native token and could lead to longer-term weakness for STX.
Can STX handle the pressure?
Recent concerns in the market have led traders to reduce their risks. As a result, the market structure weakened, further strengthening the downward momentum.
In fact, STX’s Relative Strength Index (RSI) formed a bearish crossover and fell into oversold territory.
At 23, the RSI showed that the sellers had completely regained control. Additionally, the Spot Trading Volume metric also confirms this downward trend.
While sales volume increased to 4.98 million, purchase volume decreased to 4.24 million. Previously, buyers showed relative strength, increasing the purchasing volume to 20.4 million.
He warns that potential weakness will continue as sellers dominate the market. Therefore, if sellers continue to dominate while network demand is weak, Stacks could fall below the critical support level of $0.1 to $0.13.
However, if concerns about the Binance tag are resolved and pressure eases, the altcoin may attempt to reclaim $0.16.
Final Summary
- STX fell to a 6-year low of $0.13 amid market concerns about the Binance tag.
- Stacks’ market structure remains bearish due to weak on-chain activity and seller dominance.
