Stacks (STX) plunged to $0.13 on July 25, hitting levels unseen since mid-2020 after breaking its $0.16 support. The drop marked a 6.2% daily loss, triggered largely by market worries surrounding its Binance token tag ahead of the PoX-5 hardfork.
The Stacks Endowment acknowledged the Binance situation, revealing ongoing talks to resolve the tag change, which they attribute to preparations for the upcoming PoX-5 upgrade. They reassured the community that once Binance finalizes consensus-level updates, the tag will be corrected. Still, traders remained skeptical, amplifying the sell-off.
Set for July 29, the PoX-5 hardfork introduces trustless Bitcoin staking where users can earn BTC rewards while maintaining custody of their keys. The recent launch of its public testnet aimed at protocol builders stirred anticipation but failed to boost user engagement on the mainnet.
Chain data paints a bleak picture: daily active users fell to 1,100, matching a low last seen in January 2026, according to Token Terminal. This decline signals the upgrade hasn't yet attracted fresh participation or retained existing users, often a precursor to weakening token demand.
Market indicators underline the bearish mood. The Relative Strength Index dived into oversold territory at 23, signaling heavy selling pressure. Spot Buy Sell Volume stats showed sell volume surpassing buys, with 4.98 million against 4.24 million. Previously, buy volumes peaked at 20.4 million, highlighting the shift in momentum.
These trends suggest the STX token could face further downside unless network activity revives or positive news emerges. If sellers maintain control amid weak demand, prices might fall below the current $0.13 support.
