Starknet’s 9% rally sparks hope – Will STRK overcome $0.45 barrier now?

• As at press time, Starknet appear in gainers’ leaderboard for the last 24 hours.
• STRK stuck in a range but open interests are rising  for the last 7 days.

Starknet [STRK] continues to gain attention in the crypto space due to its unique mechanism for paying fees, securing the network, and enabling staking for consensus.

With a market cap exceeding $775 million, STRK recently saw gains above 9%, with trading volume increasing by 39% in the last 24 hours as per CoinMarketCap.

This placed Starknet in the fourth position among the top 100 cryptocurrencies by market cap, suggesting that if market conditions improve, STRK could experience further gains.

Source: CoinMarketCap

Price action of Starknet in a range

The price action of STRK indicates a bullish outlook. However, the crucial question remains: will the STRK/USDT pair maintain its momentum and break above this level?

The current consolidation phase for Starknet has lasted over 50 days, but signs indicate that a breakout may be imminent. Similar to other cryptocurrencies, STRK’s price has shown rejections at its range lows, suggesting that a bottom could be forming.

Observing the three previous rejections reveals a pattern: each rejection has led to a subsequent move higher. Although prices occasionally wicked above the resistance level before closing inside it, the third rejection resulted in a strong close at the range highs.

Source: TradingView

Breaking and holding above the $0.45 price level, would signal a bullish trajectory for Starknet. Additionally, the MACD indicator supports this bullish outlook.

Its histogram suggests incoming upward momentum for Starknet, while the Bollinger Bands are opening, reinforcing the potential for price increases.

Conversely, if STRK fails to break above the current range defined by the sideways movement of the Bollinger Bands, it may indicate a continued downward trend. Traders must stay alert to all potential outcomes.

Open interest rises

An analysis using the Hyblock Capital tool reveals a significant rise in Starknet’s open interest, which has increased by over 76%. This uptick solidifies the idea that Starknet might follow other altcoins that are beginning to gain traction.

Source: Hyblock Capital

As more traders, investors, and whales engage in Starknet’s futures market, the potential for a breakout above the range highs increases. This could open the door for gains exceeding 23% if STRK manages to reach the $0.55 price level.

In/out of the money

Lastly, an examination of the in/out of the money metric illustrates the profitability of STRK tokens.

Approximately 7.84b STRK, worth over $3.3b, are currently in profit, indicating that more than 78% of the tokens are “in the money.” In contrast, around 2b STRK, valued at $847.5m, are “out of the money,” which represents 20%.

Source: IntoTheBlock

Only 1.56% of STRK tokens are at the money, with the majority of profitable tokens entering circulation before STRK’s market launch.

Realistic or not, here’s STRK’s market cap in ETH terms

Starknet shows promise as it gains traction in the crypto market. As more traders engage and market conditions improve, STRK has the potential to move higher.

With strong technical indicators and a growing community, Starknet is one to watch closely in the coming weeks.