- The Nakamoto upgrade will help increase transaction speed.
- However, market sentiment remained bearish on this token.
Bitcoins [BTC] layer 2, Stacks [STX], has been preparing for a major upgrade for months.
However, as the L2 geared up for this upgrade, the token’s price action turned bearish. Will this upgrade generate enough bullish sentiment to push the token to $2?
All about Stacks upgrade
Named after Satoshi Nakamoto, Bitcoin’s anonymous developer, the Nakamoto upgrade will separate Stacks’ block production scheme from Bitcoin.
The upcoming Stacks upgrade will be pushed on October 29th.
According to the official document,
“The Nakamoto Release is an emerging hard fork on the Stacks network, designed to provide several benefits, the most important of which are increased transaction throughput and 100% Bitcoin finality.”
Production of Stacks blocks would no longer depend on miner elections under Nakamoto.
Instead, miners generate blocks at a predetermined rate, and the set of PoX Stackers relies on miner elections to decide when to switch from one miner to another.
Will STX Cross $2?
While the blockchain was preparing for a major upgrade, the token, STX, didn’t see much benefit. CoinMarketCaps facts revealed that the price of STX has fallen by more than 5% in the past 24 hours.
At the time of writing, Stacks was trading at $1.84 with a market cap of over $2.75 billion. The bad news was that the token’s trading volume increased while its price fell, legitimizing the price drop.
AMBCrypto chose to dig deeper into the current state of STX to find out if it is feasible to expect the token to touch $2 in the coming days.
According to our analysis of Santiment’s data, STX’s weighted sentiment fell significantly last week. This meant that bearish sentiment around the token increased, indicating a lack of confidence among investors.
Source: Santiment
Also according to Coinglass’ factsSTX’s long/short ratio dipped. When the measure falls, it means that there are more short positions in the market than long positions, which can be considered a bearish sign.
Finally, Stacks’ Open Interest saw a decline. This indicated that the ongoing bearish price trend could change in the coming days.
AMBCrypto looked at STX’s daily chart to better understand what to expect.
Read Stacks [STX] Price prediction 2024-25
According to our analysis, the price of STX was moving within an ascending triangle pattern. The latest price drop could be because the token consolidated within the pattern.
A breakout above the ascending triangle could push the token well above $2 in the coming days.
Source: TradingView