Stacks (STX), the leading layer-2 scaling solution for Bitcoin, is feeling the chill of the broader crypto market correction. As Bitcoin itself sinks below $60,000 – its lowest level in two months – STX has plummeted to prices not seen since mid-February, briefly dipping below $2.

While STX has clawed its way back to around $2.14, the future remains uncertain. Tightly linked to Bitcoin's fate and the overall altcoin sentiment, STX could be poised for a steeper fall.

Why is STX Struggling?

Several factors are conspiring against Stacks:

Bitcoin Blues: Bitcoin's price correction drags everything down with it. Spot Bitcoin ETF flows have been negative for five straight days, reflecting investor caution.

Hawkish Fed: The Federal Reserve's recent hawkish stance, prioritizing inflation control over interest rate cuts, dampens investor enthusiasm for riskier assets like crypto.

Altcoin Bloodbath: The entire crypto market is in a bearish state, with most altcoins experiencing significant losses.

Where Could STX Go From Here?

With the storm clouds gathering, the downside risks for STX are undeniable. Here's a breakdown of potential support levels:

$2.06: If the January highs crumble, the next line in the sand is the 200-day moving average (200DMA) hovering around $1.80. A breach below this could trigger a significant sell-off.

$1.25: A further 40% drop could land STX at $1.25, bringing its market cap under $2 billion. While this might be an attractive entry point for some, it signifies a brutal correction.

Beyond the Gloom

While the short-term outlook for STX might be bleak, the project remains a major player in Bitcoin's layer-2 scaling scene. Long-term investors might see this as a buying opportunity.

Presale Alternatives?

The article concludes with an alternative investment option – the presale of DICE, a utility token for a well-established crypto casino, Mega Dice. This is a promotional tactic and not financial advice, so always do your own research before investing.