Nakamoto Upgrade: Impact on Stacks (STX) and Price Outlook

The Nakamoto upgrade aims to enhance transaction efficiency.
Despite this, market sentiment regarding the token remains pessimistic.

Bitcoin’s [BTC] layer 2 solution, Stacks [STX], has been gearing up for a significant upgrade for several months.

Yet, as the L2 neared this upgrade, the price movement of the token took a bearish turn. Will this upgrade generate sufficient bullish sentiment to elevate the token’s price to $2?

Overview of the Stacks upgrade

The Nakamoto upgrade, named after Bitcoin’s elusive creator Satoshi Nakamoto, will decouple Stacks’ block production from Bitcoin’s schedule.

The forthcoming Stacks upgrade is scheduled for October 29th.

According to the official documentation,

“The Nakamoto Release is an imminent hard fork on the Stacks network aimed at delivering multiple advantages, primarily increased transaction capacity and complete Bitcoin finality.”

Under the Nakamoto upgrade, Stacks block production will no longer rely on miner elections.

Instead, miners will create blocks at a consistent rate, while the group of PoX Stackers will use miner elections to determine the transitions between miners.

Can STX reach $2?

Despite the blockchain gearing up for a major transformation, its token, STX, has not experienced considerable gains. CoinMarketCap’s statistics indicated that STX’s price fell by over 5% in the past 24 hours.

At the time of this report, Stacks was trading at $1.84, with a market cap exceeding $2.75 billion. Compounding the issue was the spike in trading volume accompanied by a price drop, validating the decline.

AMBCrypto investigated STX’s current condition to ascertain the likelihood of the token reaching $2 soon.

Our analysis of Santiment’s data revealed that STX’s Weighted Sentiment experienced a substantial drop last week. This signifies that bearish sentiment surrounding the token has escalated, reflecting dwindling investor confidence.

Source: Santiment

Furthermore, Coinglass’ statistics indicated a decrease in STX’s Long/Short Ratio. A decline in this metric implies an increase in short positions compared to long positions, which can be interpreted as a bearish indicator.

Finally, Stacks’ Open Interest also saw a downturn, suggesting a potential shift in the prevailing bearish price trend in the upcoming days.

AMBCrypto further analyzed STX’s daily chart to assess future possibilities.

Read Stacks [STX] Price Forecast 2024-25

From our analysis, STX’s price has been fluctuating within a rising triangle formation. The recent price drop could be a result of the token’s consolidation within this formation.

A breakout above this rising triangle pattern could propel the token past the $2 mark shortly.