11 October 2024

Starknet Experiences 11% Surge, Defies Altcoin Market Downturn

Starknet, an Ethereum layer-2 scaling solution, has surged over 11% in one day, defying the broader altcoin market downturn and showcasing strong investor confidence.

Starknet Experiences 11% Surge, Defies Altcoin Market Downturn

Starknet, a prominent Ethereum layer-2 scaling solution, has witnessed a remarkable rally of over 11% in just one day, showcasing its resilience amid a broader altcoin market downturn.

As of the latest data from crypto.news, Starknet (STRK) is trading at $0.438, having reached an intraday high of $0.444. This marks a significant 28% increase from its weekly low, indicating robust upward momentum despite the prevailing negative sentiment in the altcoin sector.

The surge in Starknet's price is bolstered by substantial ecosystem growth, with the total value locked (TVL) in Starknet skyrocketing to $239.41 million. This represents an impressive increase of nearly 549% from the $36.91 million recorded at the start of the year, according to DeFiLlama. Such a rise in TVL reflects growing investor confidence in the platform, which has been instrumental in supporting STRK’s sustained gains.

A key driver behind STRK’s recent price rally was Ethereum co-founder Vitalik Buterin's decision to unlock $470,000 worth of STRK tokens. This move ignited a surge in interest and trading activity, significantly elevating the token’s profile and market value.

Additionally, the completion of the Starknet Bolt Upgrade on August 28 has further fueled this momentum. The upgrade enhanced the network's speed and reduced transaction costs by enabling parallel execution and block packing, contributing to the overall bullish sentiment.

In the last 24 hours, trading volume for STRK has surged by 140%, reinforcing the bullish trend for the token. Crypto analyst Falcão noted on X that STRK appears poised for a significant rally, with a critical horizontal resistance zone identified around $0.45. He anticipates that a breakout above this level, coupled with increasing trading volume and strengthening momentum, could trigger a substantial price surge.

Similarly, analyst CryptoJack pointed out that STRK is approaching a crucial resistance level at $0.45. A successful breach of this resistance could allow the token to escape its current range-bound pattern and target the next milestone of approximately $0.60.

Both analysts regard $0.45 as a pivotal point for STRK, with a potential breakout setting the stage for notable gains. On the daily STRK/USDT chart, the Relative Strength Index (RSI) has climbed to 60, indicating that the token is in a bullish trend while still having room for further growth before entering overbought territory.

Moreover, the Moving Average Convergence Divergence (MACD) indicator supports a bullish outlook, showing STRK trading above the neutral line. The blue MACD line is also beginning to cross above the orange signal line, suggesting that bullish momentum is gaining traction.

As STRK approaches the critical resistance at $0.45—an area where it has previously encountered selling pressure—a breakthrough could signal a strong upward move. Should it clear this hurdle, a bullish reversal may be confirmed, potentially targeting the next resistance level near $0.60.

Source: crypto.news