STBL drops 23% despite the milestone launch of its USST stablecoin.
Indicators confirm strong bearish momentum and oversold pressure.
Buyback and burn plans may aid long-term recovery after this decline.
STBL, the governance token of the decentralized protocol enabling dollar-pegged stablecoins, has crashed over 23% in the past 24 hours.
Interestingly, this occurred despite the project having reached the first phase of its USST stablecoin issuance.
While this marked a significant milestone, STBL’s price failed to react positively. Here is why and what could be next for the altcoin.
STBL Ignores Stablecoin Launch
On the 2-hour chart, the Moving Average Convergence Divergence (MACD) signals a clear downward trend.
The 26 EMA (orange) stretches above the 12 EMA (blue), confirming bearish dominance as sellers tighten their grip on market momentum.
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STBL trades at $0.23 at press time, moving within a descending channel, indicating persistent sell pressure and an ongoing bearish trend.
If this pattern continues, STBL’s price could break below its next support zone at $0.19.
Similarly, the Relative Strength Index (RSI) stands at 28.35, significantly below the 30 oversold threshold, indicating that bearish momentum remains strong.
As long as this remains the case, the cryptocurrency value might remain suppressed to the downside.
Earlier today, the protocol announced the minting of its USD-pegged stablecoin, USST.
“The upgraded minting contracts are now live, and the first tranche of $250K USST has been minted using tokenized RWAs. This marks the beginning of the USST issuance phase.” The project stated.
However, the project mentioned that the main event will take place on October 10.
Yet, even this milestone failed to lift sentiment as STBL continued its downward spiral, reflecting fading confidence around the project.
STBL Price Analysis: Bearish
Despite this milestone, the 4-hour chart continues to reflect a similar trend. STBL’s Bull Bear Power (BBP) stands at -0.084, revealing that bearish dominance continues to suppress upward movement.
The histogram bars dip deeper below the neutral line, indicating intensifying sell pressure as bears maintain control around critical support levels.
Likewise, the Awesome Oscillator (AO) remains negative at -0.015, with consistent red bars reflecting an unbroken bearish drive. Buyers have yet to regain control or trigger any meaningful reversal signals.
If this downtrend holds, STBL could fall to $0.21, a critical support level, pushing the token deeper into lower price zones.
A glance at the Fibonacci retracement levels reveals that STBL’s price is currently trading at $0.23.
A drop below this point could expose the token to the 0.236 Fib level at $0.19, while extended losses may drive it down to the Fib level at $0.081.
However, a sustained reversal could lift STBL toward the 0.382 Fib level at $0.28, now a key resistance zone.
Increased buying momentum above this mark could propel STBL’s price toward the 0.618 Fib level at $0.41, signaling the early stages of a potential midterm recovery.
What Lies Ahead
Outside the price action, STBL CEO and founder Avtar Sehra mentioned that the minting of USST will result in fees that will be used to buy back STBL.
Sehra also mentioned that some of the STBL will be burned to reduce supply, which could in turn drive the altcoin’s price higher.
“Because all protocol revenue is directed into buybacks, every dollar of activity in the ecosystem directly translates into demand for STBL,” He added.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Victor Olanrewaju is a crypto analyst and reporter at CCN with deep roots in on-chain research and technical analysis. His crypto journey began in 2017, but it was the 2020 Uniswap airdrop that sparked a full-time pivot into the space.
With a foundation in copywriting, Victor honed his craft creating high-converting content for leading crypto brokers — most notably an XRP price prediction that ranked #1 on Google during the 2021 bull run.
He later joined AMBCrypto in 2022, where he combined storytelling with technical and on-chain analysis to cover key market narratives.
In 2024, he expanded his expertise at BeInCrypto, collaborating with analysts and using tools like Glassnode, Santiment, and IntoTheBlock to break down Bitcoin and altcoin trends.
At CCN, Victor covers the top cryptocurrencies, memecoins, macro shifts, blending real-time insights with deep-dive metrics.
He holds a Bachelor’s degree in Physics from the University of Ibadan, equipping him to simplify complex data for a wide audience. Follow his work or connect on LinkedIn or X.
