Starknet Rallies: Will the Next Breakout Lead to It Going Higher?

Date: Sat, Sept 07, 2024, 06:14 AM GMT

The cryptocurrency market has been experiencing a rough patch lately, with many altcoins struggling to keep their momentum as Bitcoin (BTC) continues to decline. However, Starknet (STRK), the ZK-Rollup Layer 2 network built on Ethereum, has been defying the trend with impressive gains. Over the past week, the STRK token has surged by +13.83%, and in the last 30 days, it’s up by +11.31%, boasting a market cap of $736 million.

Despite this recent surge, it’s worth noting that STRK is still down over 88% from its all-time high of $3.66, which it reached in February 2024, according to Coinmarketcap.

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More Gains Ahead?

Starknet (STRK) has been trading within a consolidation zone between $0.34 and $0.42 for over a month now. Currently, STRK is priced at $0.41, close to the upper resistance of this range. If the bulls manage to break through the $0.42 level, STRK could target $0.49 and $0.55, representing potential gains of nearly +30% from its current price.

However, the broader market conditions could pose a challenge. With Bitcoin’s price continuing to fall, currently trading around $54K, some experts predict a further drop to $49K. This downward pressure on Bitcoin could impact Starknet’s upward momentum, possibly leading to a downturn.

As always in the volatile world of cryptocurrencies, caution is key. While Starknet’s recent performance is promising, market conditions can change quickly. Keep an eye on both STRK’s price action and the overall market trends to gauge whether this rally will lead to higher gains or a potential pullback.

Disclaimer: The information provided in this article is for informational purposes only and should not be considered financial advice.