Amid a hostile market environment, Stacks (STX) continued its downtrend as bears continue to exert pressure. According to CoinGeckotoken is down almost 23% since last week, worsening the current correction phase the market has entered. Latest market data shows that major cryptocurrencies such as Bitcoin AND Ethereum showed a 10% drop from last week, pulling market fell 2%.

However, several events could support sluggish the token’s decline. These events are showing Stacks as a major layer 2 for the top cryptocurrency on the market.

Stacks: Big news for BTC investors and enthusiasts

Even though the market is extremely bearish, Stacks remains attractive to both institutional and retail investors.

Since the first step of the Nakamoto update rolled out On April 22 of last year, the newly introduced role of “Signers,” their self-created term for validators, grew significantly. According to their blog post On August 1, 39 blockchain institutions signed an agreement with Stacks.

Among the signatories are Xversea Bitcoin wallet provider that deals with the BRC-20 standard. This gigantic implementation will result in a larger user base, giving Stacks a massive advantage as layers 2 on the Bitcoin blockchain attract more attention.

However, the partnership announcement made between Stacks and Aptos during the Bitcoin Builders conference has created some buzz around the two. According to some key takeawaysAptos will join Stacks as a signatory, bringing the total number of signatories to 40. At the same time, a working group will be established to improve collaboration between the two organizations.

Stacks 🤝 @Aptos live on stage at the Bitcoin Builders conference!

🟧 @AptosLabs Ecosystem chief Neil Harounian spoke with @StacksOrg Chair Brittany Laughlin on the formation of the working group and the Aptos Foundation becoming a signatory to Stacks.

Find out more 1/3 👇 photo:twitter.com/EFTsIntD6M

— stacks.btc (@Stacks) July 31, 2024

Since the onboarding of Signers, around 118 BTC have been distributed to various institutions. This amount is over $7 million at the current Bitcoin spot price of $60.7k.

Investors should pay attention to these levels

At the time of writing, the current STX position is still held by bears as the current market environment encourages selling rather than buying. However, bulls are forming a string defense around the $1,460 low.

This is a huge deal for bullish STX investors as it gives bulls forceful support for a possible move up. However, the possibility of a bullish breakout remains uncertain. The current downtrend in the market is supported by the fact that major cryptocurrencies are still bearish in the brief and medium term.

If bulls can defend the $1,460 line, we can expect less volatility in the market compared to today’s moves. If they can, reclaiming the May and June price levels will be basic.

Investors and traders should closely monitor any market movements in favor of the bulls.

Featured image is from Boxmining, chart is from TradingView