Stacks Price Prediction 2024: STX Price Analysis
What's next for Stacks?
Key Takeaways
- Stacks (STX) reached its all-time high price on March 2024.
- Stacks is a Layer-2 solution built on top of Bitcoin.
- Our Stacks price predictions suggest the bottom has been reached.
The Stacks cryptocurrency is a rare outlier. One of the few cryptos explicitly approved by the United States Securities and Exchange Commission (SEC), the token, which helps people use the Bitcoin (BTC) blockchain in much the same way they would Ethereum (ETH), still suffered when the market fell following the SEC’s lawsuits against Binance and Coinbase in early June 2023.
However, the news of investment firm Blackrock filing for a Bitcoin exchange-traded fund (ETF) helped boost the price later on in the month, with STX recovering from the market slump better than most, even if the best of the recovery was over by early July 2023.
In late 2023 and early 2024, excitement about spot Bitcoin ETFs saw it reach its best price in almost two years in early January 2024.
Stacks Nakamoto upgrade went live in April, shortly before the Bitcoin halving. The STX price was worth $1.89 as of July 16 2024.
Stacks did not respond to a request for comment.
Let’s now take a look at our own price predictions for Stacks, made on July 16, 2024. We will also examine the STX price history, and talk a little about what STX is and what it does.
Stacks Price Prediction
Here are the Stacks price predictions from CCN on July 16, 2024. It is important to remember that price forecasts, especially for something as potentially volatile as crypto, are often wrong.
| Minimum Stacks Price Prediction | Average Stacks Price Prediction | Maximum Stacks Price Prediction | |
|---|---|---|---|
| 2024 | $5.90 | $6.35 | $6.80 |
| 2025 | $1.50 | $1.95 | $2.40 |
| 2030 | $22.80 | $26 | $29.20 |
There are two methods used to create our Stacks price predictions. Predictions are created using fractals (mirroring movements and indicator readings) and the wave count.
The mean of the two predictions gives the average Stacks price prediction, the more bullish one is used for the maximum price prediction while the more bearish one is for the minimum.
Fractal Method
In June 2020, Stack’s weekly RSI moved above 50, coinciding with a breakout from a long-term horizontal resistance area. Then, the weekly RSI reached overbought territory, causing a temporary retracement, which validated the horizontal area as support (green icon). Then, STX increased rapidly, culminating with a new all-time high of $3.26 in November 2021.
Another characteristic of the increase is that the high was not made the first time the RSI reached overbought territory. Rather, it was the bearish divergence in the weekly RSI marking the absolute top.
A nearly identical movement has transpired since the beginning of 2023. The weekly RSI moved above 50, coinciding with a breakout from a horizontal resistance area. Then, the RSI reached overbought territory, starting a retracement that validated the area as support. the STX price has increased since, already making the first high which was combined with an overbought RSI reading.
If the same pattern is followed, STX will reach another high that is combined with bearish divergence and start a long-term correction.
The movement from the breakout to the first high was 1.38 times longer in 2024. Keeping this ratio and the same rate of increase leads to an all-time high of $8.65 in February 2025.
Projecting the shape of increase and ensuing correction leads to a Stacks coin price prediction of $5.90 and $1.50 for the end of 2024 and 2025, respectively.
Wave Count Method
The most likely wave count suggests that STX started a five-wave upward movement on November 22. If so, it has just completed wave four. The most likely target for the top of wave five is between $8 and $10. The target is found by the 2.61 external Fibonacci retracement level and by giving wave five the 0.382 length of waves one and three combined. So, an average prediction of $9 is chosen.
If wave five has the same length as wave three, the high will be reached in February 2025.
Projecting a similar rate of increase and correction leads to a Stacks price predictions of $6.80 and $2.40 for the end of 2024 and 2025, respectively.
Finally, we use the daily rate of increase for the past four years to determine the Stacks price prediction at the end of 2030. The Stacks price has increased by 950% in the past 1,463 days since July 2020, for a daily rate of increase of 0.65%.
Projecting this increase until the end of 2030 leads to a target of $26. Adding and removing 20% to this target gives our minimum and maximum Stacks crypto price predictions.
Stacks Price Prediction for 2024
Our wave count and fractal methods give similar Stacks price predictions for the end of 2024, giving targets of $5.90 and $6.80, respectively.
Stacks Price Prediction for 2025
Our wave count and fractal methods both imply the Stacks price will be in a downtrend in 2025. However, they give different Stacks price predictions for the end of 2025. The actual targets are $1.50 and $2.40, respectively.
Stacks Price Prediction for 2030
The Stacks price prediction for the end of 2030 is made using the daily rate of increase for the past four years. Doing so gives a target range of $22.80 to $29.20.
Stacks Price Analysis
The daily time frame Stacks price chart shows a decline under a descending parallel channel since April. Such channels often contain corrective movements. The STX price fell below the channel’s midline on July 5 but bounced afterward, reclaiming it. Now, the price of Stacks trades close to the channel’s resistance trend line.
The daily RSI and MACD support the possibility of a breakout since both are trending upward. Also, the MACD has nearly crossed into positive territory while the RSI has already moved above 50.
As a result, the daily time frame STX price analysis indicates a breakout is likely, catalyzing an upward movement toward $2.40.
Short-term Stacks Price Prediction
The Stacks price prediction for the next 24 hours rests on the assumption that STX will break out from the channel and increase toward $2.40. However, due to the initial rejection (red icon), it is likely the Stacks price tomorrow will be lower, possibly at $1,70.
Then, once a breakout happens, the STX price can increase to $2.40, possibly reaching the resistance area next week.
Stacks Average True Range (ATR): STX Volatility
The Average True Range (ATR) measures market volatility by averaging the largest of three values: the current high minus the current low, the absolute value of the current high minus the previous close, and the absolute value of the current low minus the previous close over a period, typically 14 days. A rising ATR indicates increasing volatility, while a falling ATR indicates decreasing volatility.
On July 16, 2024, STX’s weekly ATR was at 0.52, a sign of high volatility. Divided by the $1.83 STX price the ATR is at 0.29.
Stacks Relative Strength Index (RSI): Is STX Oversold or Undersold?
The Relative Strength Index (RSI) is a momentum indicator traders use to determine whether an asset is overbought or oversold. Movements above 70 and below 30 show over and undervaluation, respectively. Movements above and below the 50 line also indicate if the trend is bullish or bearish.
On July 16, 2024, Stack’s weekly RSI was at 48, a sign of a bearish trend. The RSI has been in a downtrend since January 2024.
Stacks Market Cap to TVL Ratio
The market cap to Total Value Locked ratio (TVL ratio) measures the valuation of a decentralized finance (DeFi) project by comparing its market capitalization to the total value of assets locked in its smart contracts. This ratio shows the project’s utilization and links the platform’s health to the value of locked assets.
A ratio above 1.0 indicates overvaluation because the market cap exceeds the value of assets used in the platform. A ratio below 1.0 indicates undervaluation because the market cap is lower than the value of locked assets. On July 16, 2024, the Stacks TVL ratio was 11.2, suggesting significant overvaluation.
Stacks Price Performance Comparison
Stacks is a Layer-2 solution, so let’s compare it with other similar projects.
Best Days and Months to Buy Stacks
We took a look at the Stacks price history and found the times when the price was at its lowest across certain days, months, quarters, and even weeks in the year, indicating the best times to buy STX.
| Time to Buy Stacks | Days, Months, and Quarters |
|---|---|
| Best Day | Monday |
| Best Week | 28 |
| Best Month | February |
| Best Quarter | First |
Advantages and Disadvantages of Stacks
Blockchain analytics company Messari recently released a quarterly report on Stacks. In it they highlighted its positive work with Bitcoin, and outlined some key advantages and disadvantages to the platform.
It found:
- Stacks revenue (USD) increased 3,386% QoQ and 3,028% YoY to $637,000. Much of this revenue was driven by inscription protocol STX20.
- STX’s market cap increased 203% QoQ and 598% YoY to $2.0 billion. STX’s growth outpaced BTC and the overall crypto market.
- DeFi TVL (USD) increased 363% QoQ and 763% YoY to $61 million. ALEX firmly remained the leader in TVL, but Arkadiko and StackingDAO considerably increased their own TVL dominance in Q3 and Q4.
- Average daily miner revenue increased 1,015% YoY to $78,000. STX’s price increase and Stacks’ increased revenue made it significantly more profitable for Bitcoin miners to participate in Stacks’ consensus.
- The Nakamoto upgrade is expected in April 2024. This update will enable faster blocks, give transactions 100% Bitcoin finality, reduce MEV, and eliminate forking on the Stacks layer to set the stage for the upcoming sBTC release.
Advantages of Stacks
Messari says that Stacks
- Was able to cash in on growing interest in the Bitcoin blockchain last year, spurred by trading in Bitcoin Ordinals, the blockchain’s equivalent of non-fungible tokens (NFTs).
- Has a lot of potential for ecosystem growth.
- Can help give people access to Bitcoin mining pools, thus potentially lowering the need for a very powerful computer to mine BTC.
Disadvantages of Stacks
Messari also says Stacks
- Is potentially too reliant on the ALEX decentralized finance (DeFi) protocol, which has 90% dominance over the Stacks DeFi ecosystem.
- Had an issue with staking rewards caused by a bug.
- Saw some metrics drop over the three months.
STX Price History
| Period | Stacks Price |
|---|---|
| Today (July 16, 2024) | $1.84 |
| Last Week (July 9, 2024) | $1.37 |
| Last Month (June 16, 2024) | $1.93 |
| Three Months Ago (April 16) | $2.24 |
| One Year Ago (July 16, 2023) | $0.63 |
| Launch price (October 28, 2019) | $0.21 |
| All-time high (April 1, 2024) | $3.67 |
| All-time low (March 12, 2020) | $0.06 |
Stacks Market Cap
The market capitalization, or market cap, is the sum of the total number of Stacks in circulation multiplied by its price. On July 16, 2024, Stack’s market cap was $2.72 billion, making it the 36th largest crypto by that metric.
Stacks Supply and Distribution
| Supply and Distribution | Figures |
|---|---|
| Total Supply | 1,818,000,000 |
| Circulating Supply as of July 16, 2024 | 1,474,531,521 (82% of total supply) |
From The Whitepaper
Stack’s whitepaper says that it wants to serve as a kind of bridge between the solidity of Bitcoin and the development potential of Ethereum.
It says: “Stacks is a Bitcoin layer for smart contracts; it enables smart contracts and decentralized applications to trustlessly use Bitcoin as an asset and settle transactions on the Bitcoin blockchain.”
Software engineers Muneeb Ali and Ryan Shea founded Stacks. Princeton PhD Ali founded Trust Machines, which is a platform for Bitcoin-related applications, in 2021. Shea, meanwhile, helped set up Facebook’s GraphMuse app in 2012.
Stacks (STX) Explained
One of the biggest splits in crypto is between Bitcoin and Ethereum (ETH). At the heart of the debate is whether a blockchain should focus on supporting a crypto, like Bitcoin, or should allow people to build their own programs, like Ethereum. Since Bitcoin is the largest crypto out there, there will be people who want to use its reach and power to create their own decentralized applications (DApps) but the chain does not allow them to do so.
Stacks, which was founded in 2013, with the first version of its blockchain coming in 2018 and the current chain coming online in 2020, hopes to change that.
Supported by the STX coin, the platform is designed to connect with the Bitcoin blockchain. It allows users to utilize smart contracts, computer programs that automatically execute once certain conditions are met, to create their own applications.
How Stacks Works
Stacks makes use of a Proof-of-Transfer (PoT) consensus mechanism to add blocks to the blockchain and earn rewards. This means that users transfer a, in this case Bitcoin, to other participants in the network in order to secure and grow the blockchain, effectively paying with BTC to earn STX.
As far as the STX coin goes, the whitepaper explains how it works when it says: “Stacks miners use Bitcoin to mine newly minted Stacks. Stacks holders can lock their STX in consensus to earn Bitcoin, making STX a unique crypto asset that is natively priced in BTC and gives BTC earnings.”
Apart from miners, there are other Stacks users called Stackers. These people stake their STX for about two weeks or so. This means they can run a computer, or node, on the network, earning Bitcoin for doing so.
STX can also be bought, sold, and traded on exchanges.
Is Stacks a Good Investment?
It is hard to say. On one hand, the crypto market can be an unforgiving place. STX investors will have learned this when their coin lost more than 90% of its value, a worse performance than the market average, in 2022.
On the other hand, the fact that STX has been given the SEC’s seal of approval could stand it in good stead during this time of regulatory uncertainty. Its links to Bitcoin could also see it emerge as a real winner during a tough time. As always with crypto, you will need to make sure that you do your own research before deciding whether or not to invest in Stacks.
Will Stacks go up or down?
No one can really tell right now. While many of the longer-term STX price predictions are optimistic, price predictions end up being wrong more often than not. You should also remember that prices can, and do, go down as well as up.
Should I invest in Stacks?
Before you decide whether or not to invest in Stacks, you will have to do your own research, not only on STX, but on other, similar, coins and tokens, like Polygon (MATIC) and Arbitrum (ARB). Ultimately, though, you will have to make this decision for yourself and, more importantly, you should make sure you never invest more money than you can afford to lose.
FAQs
Will Stacks reach $10?
Our price predictions suggest that Stacks can reach a new all-time high above $10 in 2025.
What is Stacks used for?
The STX coin is used to reward people who are active on the Stacks blockchain, which helps people combine decentralized applications and the Bitcoin blockchain.
Disclaimer
Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.
