As a seasoned researcher with over two decades of experience in the financial markets, I have seen my fair share of bull runs and bear markets. However, the recent surge in Starknet (STRK) has piqued my interest, not just because of its impressive 11% rally over the past day, but due to the underlying fundamentals that seem to be driving this growth.
Starknet, an Ethereum layer-2 scaling solution, rallied more than 11% over the past day.
As per information from crypto.news, at the time of writing, Starknet (STRK) was being traded for approximately $0.438. During the day, it peaked at $0.444. This represents a 28% increase relative to its weekly low, indicating robust upward movement. However, the wider altcoin market is currently seeing a decline.
The strong market sentiment is further reinforced by the expansion of the ecosystem, as the total value locked (TVL) in Starknet has soared to an impressive $239.41 million – a significant jump of approximately 549% compared to the initial report of $36.91 million at the start of the year, according to DeFiLlama’s data.
This rising TVL reflects growing confidence in the platform, contributing to STRK’s sustained gains.
One significant factor driving the recent increase in STRK‘s price was the release by Ethereum co-founder Vitalik Buterin of $470,000 worth of STRK tokens. This action ignited a flurry of interest and trading activity, boosting the token’s visibility and overall market worth.
The drive behind it has been significantly boosted as Starknet successfully completed its Bolt Upgrade on August 28. This upgrade enhanced the network’s performance by facilitating faster speed and reducing costs through the implementation of parallel processing and block compression.
The renewed optimism has led to a 140% jump in trading volume within 24 hours, driving further bullish momentum for STRK.
Analysts eye $0.45 resistance level
In relation to X, crypto expert Falcão pointed out that STRK could be gearing up for a significant surge, as it approaches a significant resistance level near $0.45, which serves as a crucial horizontal barrier.
He anticipates a jump above this point, accompanied by an increase in trading activity and growing force, which should lead to a substantial price rise.
Similarly, crypto analyst CryptoJack suggested that STRK is nearing a crucial resistance at $0.45.
Should the token surpass this current threshold, it might break free from its existing trading range and potentially head towards a new goal approximately $0.60.
In simple terms, both experts agree that $0.45 is a crucial turning point for STRK. If it breaks out from this level, it could be a sign of significant price increases ahead.
Starknet has room to grow
As an analyst, I’ve noticed on the 1D STRK/USDT chart, the token’s Relative Strength Index (RSI) has climbed up to 60, which signals a bullish trend for the token. Despite this positive momentum, there’s still potential for further growth before it approaches overbought conditions.
In simpler terms, the Moving Average Convergence Divergence (MACD) indicator aligns with a positive perspective on STRK trading, as it’s currently positioned above the neutral line. Furthermore, notice that the blue MACD line is starting to cross above the orange signal line, indicating that the bullish trend could be strengthening.
As STRK nears the resistance at $0.45 – a point where it has consistently encountered selling forces – overcoming this barrier could indicate a significant surge upward. If it successfully jumps this obstacle, a bullish reversal might be signaled, possibly aiming for the next resistance around $0.60.
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2024-09-07 17:50