Stacks Leads Bitcoin Layer-2s Since Halving – Can STX Price Reach $4?
Can STX Price Reach New All-Time High? | Credit: Hameem Sarwar
Key Takeaways
- STX, ELA and SAVM have all outperformed Bitcoin since the halving.
- Stacks began the rollout of the Nakamoto upgrade on April 22.
- After a 35% bounce, is the STX price correction finally over?
Stacks announced its biggest upgrade yet, Nakamoto, on April 15. Then, it began the Nakamoto rollout on April 22. Since the Bitcoin halving on April 19, STX has been the best-performing Bitcoin Layer-2.
STX has also increased markedly since its low on April 12. When combined with the upgrade and halving, its performance raises the question if its price can continue increasing toward a new all-time high price.
Layer-2 Performance Since Halving
The Bitcoin price has increased only incrementally since its fourth halving on April 19, moving upward by only 2% (red). In contrast, Bitcoin layer-2 solutions such as STX, ELA and SAVM have increased at a higher pace.
More specifically, STX has increased by 15%, ELA by 13% and SAVM by 11%.
The outperformance of STX can be partially attributed to the release of the Nakamoto upgrade. On April 15, STX announced it has voted in favor of the upgrade. Among others, Nakamoto will cause Stacks to achieve 100% Bitcoin finality in its transactions, in turn improving its security.
Muneeb Ali, the co-creator of Stacks announced that the Nakamoto Rollout will start on April 12, while its activation window is between May 15 – 29.
STX Price Prediction: New All-Time High Incoming?
The d2-day time frame wave count shows that STX has completed wave three in a five-wave upward movement that started in November 2022. If the count is accurate, STX is now correcting inside wave four.
This this is the most likely count, the sub-wave count is still unclear. The two possibilities are an A-B-C (black) and a triangle correction (red). While both suggest the STX price is in sub-wave B, the ensuing movement will differ based on the count.
If the price is in an A-B-C correction, it will eventually reach a lower low near $1.90. Conversely, a triangle correction will lead to a longer consolidation period before an eventual breakout.
New All-Time High in the Second Quarter
Stacks has been the best performing Layer-2 since the halving, possibly aided by the Nakamoto upgrade. Since there are two valid wave counts still in play, it is not certain if the STX low is already in place, or a slightly lower low will occur in May.
However, both counts predict that the STX upward movement is not complete yet. Rather, a new all-time high is expected in the second quarter of 2024.
Stacks Price Reaches New All-Time High — What Next for STX?
