Starknet [STRK] recently experienced a significant surge of 29.74% over the last three days, followed by a slight pullback of 2.5% just prior to the time of this writing. Despite this minor correction, technical indicators continue to point towards a bullish market sentiment.
For the period between April and September, Starknet was on a downward trajectory, losing 81.8% of its value. The recent uptrend is a positive development, but it may prompt some long-term holders to consider capitalizing on this opportunity to break even.
Predicting Starknet’s Price Movement
The silver lining in Starknet’s recent performance is the consolidation phase it experienced from August until late September. This period of stabilization was instrumental in setting the stage for a significant breakout, as evidenced by the surge in trading volume.
Both the On-Balance Volume (OBV) and Relative Strength Index (RSI) indicators have shown strong positive signals, indicating a surge in demand and momentum. The next key levels to watch for are the former support at $0.51 and the resistance level of $0.62 from July, representing potential targets for STRK.
While investors who entered the market post-August may consider cashing in on profits, long-term holders are faced with a critical decision. Should they hold on to their STRK tokens, hoping for a 300%-400% rally to reach April levels, or should they consider reallocating their investments towards other promising assets?
Ultimately, those who have conducted thorough research and maintain unwavering confidence in Starknet are likely to hold out for higher price targets. However, the majority may opt for a more pragmatic strategy.
Anticipating Price Volatility Based on Futures Data
Futures data indicates the potential for increased price volatility in the near term. A notable uptick in positive cumulative liquidation levels suggests that long positions could face liquidation pressure, possibly resulting in a price decline to $0.47 or even $0.44 within the next 24-48 hours.
Should this scenario unfold, it could present an attractive buying opportunity, provided that the spot Cumulative Volume Delta (CVD) remains relatively stable. Despite a bullish speculative market sentiment reflected in Open Interest figures, the recent decline in the long/short accounts ratio suggests some closing of long positions, indicating a need for market consolidation before further upward movements.
Disclaimer: The views expressed in this article are purely subjective and do not constitute financial, investment, or trading advice.