Stacks (STX) has kicked off its Nakamoto upgrade to enhance transaction speeds. Despite this innovation, the STX price remains under pressure.
Overview of the Nakamoto Upgrade
The Nakamoto upgrade has begun, aiming to decouple block production in the Stacks network from BTC. This will speed up block production and reduce transaction confirmation times to just 5 seconds. The upgrade will complete with a final hard fork block after a period of 2100 BTC blocks, approximately 14 days.
Long-term Forecasts for STX
Analyst David Keller (CMT) expects that despite the positive upgrade, the STX price will face short-term declines. He noted that while the long-term trend for STX is positive, current short-term trends suggest a continued decrease until the upgrade is complete. Afterward, a steady uptrend is anticipated.
Technical Analysis of STX Price
On April 1, 2024, STX saw an 820% surge, but then the trend reversed due to a significant sell-off from the $3.84 level. Currently, the STX price failed to break through the upper border of its descending wedge and remains below the 20, 50, and 200-day EMA bands. The RSI is at 50.05, indicating potential further price deterioration. The MACD also signals waning bullish momentum. If the bearish trend persists, STX could fall to the support level of $1.0 or even lower. At the time of writing, STX was trading at $1.612, with an intraday dip of 0.17%.
The Nakamoto upgrade is set to significantly improve the Stacks network and speed up transactions, but the short-term outlook for STX remains bearish. The long-term trend appears positive, but much will depend on the completion of the upgrade and market reaction.
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