STX Price Rises 10% amid Crypto Recovery and Nakamoto Upgrade Hopes
The price of Stacks (STX), the native token of the Bitcoin L2 for smart contracts development, has experienced a 10% increase in the last 24 hours. This rise can be attributed to the recent recovery in the overall cryptocurrency market, with Bitcoin reaching $45,000. However, there is potential for even further growth in the price of STX, thanks to the upcoming Nakamoto upgrade set to be released in Q1.
Nakamoto Upgrade: Boosting STX’s Price, Faster Blocks, and sBTC Launch
The Nakamoto upgrade is specifically designed to enhance the price and performance of STX. This upgrade will introduce several key improvements, including faster block generation, improved security measures, and the launch of sBTC. According to the Stacks Foundation, sBTC will be a noncustodial, programmable 1:1 Bitcoin-backed asset on the Stacks blockchain. This means that users will be able to represent their Bitcoin holdings in the form of sBTC on the Stacks blockchain. Although the Nakamoto upgrade is currently in the Testnet stage, the Stacks Foundation plans to complete it before the next Bitcoin halving, which is expected to happen in Q2, around April 2024.
Stacks Project Gains Attention as Social Dominance and Sentiment Increase
The recent price increase in STX has attracted significant attention to the Stacks project. The Social Dominance measure, which compares the rate of discussion of a project to others in the top 100, has risen to 0.627%. This indicates that the Stacks project is receiving increased attention and discussion within the cryptocurrency community. Moreover, the Weighted Sentiment reading, which tracks positive/negative commentary about a token, has also increased to 0.84, suggesting that market participants are generally bullish on the Stacks project.
Impressive STX Volume Indicates Potential for Price Rally
The volume of STX tokens being traded on exchanges and external wallets has seen a significant surge, reaching 240.78 million. This surge in volume indicates strong interest and activity surrounding STX. If the volume continues to increase, it could potentially lead to a further rise in the price of STX. However, it is worth noting that the Relative Strength Index (RSI) on the 4-hour chart suggests that the bullish momentum might pause for a while, as the reading has fallen from 81.42 to 74.39.
STX Price Shows Bullish Momentum, but Short-Term Resistance Ahead
The recent overbought conditions of the cryptocurrency have led to a slight decrease in the price of STX, which currently stands at $1.65. However, in the short term, there is a possibility that STX may retest $1.73 if buyers continue to dominate the market. Looking towards the long term, there is a high chance that STX will follow the direction of Bitcoin. Therefore, if BTC reaches a new All-Time High (ATH), it is expected that STX will also experience a similar increase in price.
Analyst comment
Positive news. The price of STX has increased by 10% due to the overall recovery in the cryptocurrency market and anticipation of the Nakamoto upgrade. The upcoming upgrade will enhance the price and performance of STX, with faster block generation, improved security, and the launch of sBTC. The Stacks project has gained attention and positive sentiment, with increased discussion and bullish market participants. The surge in STX volume indicates potential for a price rally, although the short-term resistance may cause a pause in bullish momentum. Long-term, STX is expected to follow Bitcoin’s direction and potentially reach new ATHs.
