ALT Price Hits New All-Time High After AltLayer Staking Release
What's Next for ALT After All-Time High?
Key Takeaways
- AltLayer launched its staking feature on March 27.
- The ALT price reached a new all-time high the same day.
- Will the staking release mark the start of a new ALT uptrend?
The AltLayer staking release is the final step before the launch of MACH Alpha, which will help Optimism and Arbitrum regarding their slow finality and interoperability.
The ALT price reached a new all-time high the day of the release but has fallen slightly since. It has been devoid of any significant volatility since its release, trading inside a long-term consolidation pattern.
What is AltLayer Staking?
On March 27, AltLayer announced the launch of its staking feature . The staking release will precede the launch of MACH Alpha , a finality layer on top of EigenLayer’s restaking mechanism. MACH is expected to address issues of slow finality, interoperability and fragmentation which are ever-present in rollups.
MACH will serve two of the biggest rollups, Optimism and Arbitrum. It will allow users to delegate ETH, Liquid Staking Tokens and ALT tokens to secure the network. It will also offer decentralized validation, enhancing the security and efficient of Optimism and Arbitrum. Both use optimistic rollups instead of zk-rollups, perhaps contributing to their slow finality times.
Since optimistic rollups assume that a transaction is true until proven otherwise, there is a “challenge period” for those monitoring the rollup to submit proof of fraud.
Transactions achieve finality only after this period is complete. So, while transaction times are faster since they occur in the rollup, finality is achieved on the parent blockchain only after the challenge period.
Conversely, zk-rollups have slower transaction times since they include the validity proof in the transaction, but finality is much faster.
The ALT price reached a new all-time high of $0.69 shortly after the announcement but has fallen slightly since.
ALT Price Prediction: What’s Next?
The ALT price has increased alongside an ascending parallel channel since its release on January 25. It continuously made all-time highs while reaching the channel’s resistance trend line (red icons).
On March 27, it reached the current all-time high of $0.69 (white icon). However, the price fell afterward, creating a bearish daily candlestick.
The decrease was preceded by a bearish divergence in the daily RSI (green), an occurrence that often leads to downward trends. Currently, the ALT price trades just above the channel’s midline.
ALT can continue consolidating as long as it trades inside this channel. The reaction to the midline will likely determine if the short-term move is a bounce or a breakdown.
A bounce can trigger an increase to the resistance trend line at $0.72, while a breakdown can cause a drop to the support trend line at $0.50.
Volatility will likely not be present until the ALT price either breaks out or down from the channel. Both are possible at the current time.
ALT Trend Unclear Despite Positive Developments
The AltLayer staking release is a positive development for the ecosystem, and MACH will likely bring further positive attention to ALT. However, the ALT trend remains undetermined as long as the price either breaks out or down from the channel.
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