Starknet (STRK) Shows Signs of Recovery: Market Analysis
Starknet (STRK), an Ethereum layer-2 token, is showing signs of recovery after a period of market pressure.
With the launch of a staking program and growing adoption, technical indicators are signaling positive momentum, although caution is still advised.
Launch of the Staking Program and Its Impact
According to information we cited from BeInCrypto, the launch of Starknet’s staking program triggered a 10% price increase, approaching key resistance levels at US$0.51 and US$0.59.
However, the RSI indicator reaching 77 signals an overbought condition, which could lead to a price correction.
RSI Analysis: Market Momentum
Starknet’s Relative Strength Index (RSI) currently stands at 42.92, up from the previous 37.29.
An RSI between 30 and 70 indicates a neutral market condition, with values near 70 suggesting overbought territory and values near 30 indicating oversold.
This increase in RSI reflects a recovering market momentum, though it is not yet strong enough to confirm a sustained upward trend.
Chaikin Money Flow (CMF): Buying Pressure Increases
Starknet’s Chaikin Money Flow (CMF) indicator has risen to -0.10 from a previous -0.32, signaling a decrease in selling pressure and a rise in buying interest.
Although still in negative territory, this trend suggests that buyers are beginning to return to the market, offering hope for a potential price recovery.
Challenges and Future Prospects
Despite these positive signals, Starknet faces challenges with a planned unlock of 127.6 million STRK tokens valued at around US$15.71 million.
This increase in supply could add selling pressure in the market. However, Starknet’s move to enable STRK payments at 15,000 stores worldwide demonstrates a serious effort to boost adoption and utility of the token.
Conclusion
Starknet is showing signs of recovery with improving technical indicators and strong adoption initiatives.
However, investors should remain cautious about the potential pressure from the upcoming token unlock.
Monitoring technical indicators and project developments will be key in determining the future direction of STRK’s price movement.
