Development Rises & Analysts Are Bullish; Can STRK Attain 2x Rally?

• 1 The upcoming token unlocks for several Layer 2 blockchain projects, including Starknet, are anticipated to bring considerable activity and volatility.
• 2 The Starknet (STRK) has experienced a significant increase in trading volume alongside healthy developer activity.

Starknet (STRK) specializes in blockchain scalability solutions, which StarkWare developed. It has enabled the execution of crypto transactions with considerably reduced fees and higher processing speed. Scalable dApps developed by developers could be deployed on Starknet, which would benefit from its efficiency in processing transactions.

It is a permissionless zk-rollup that operates on the ETH mainnet. It utilizes the validity proofs of STRK to enhance its computational integrity further, ensuring that computation over the network is correctly performed.

According to the CoinMarketCap data, the volume of 24-h rose by 95.55%, which amounted to $251.499 Million, and the volume to market cap ratio of 16.35% signifies that good liquidity is present in the market. Thus making buying and selling more convenient for traders and investors.

What Does Good Development Activity Highlight?

Moreover, Starknet highlights healthy developer activity as the developer’s activity contributor’s commit count is also increasing over time. The developer’s activity and commit count have exhibited sustained growth in STRK in the last one year and consistent activity occurring, which is a positive sign. 

This chart highlights that a certain amount of regular work is happening in STRK crypto, and developers are working seamlessly on it. These metrics highlight positive sentiment in the STRK crypto.

STRK Is One Of The Major Components Of Layer2 Token Unlocks

As per the Layer2 Insider tweet on X, upcoming token unlocks for several Layer 2 blockchain projects could impact the market. Overall, the token unlocks progress pie chart on CoinMarketCap states that STRK has unlocked 847.77 Million STRKs, and 3.7 Billion STRKs are still unlocked. Meanwhile, the pie chart also illustrates that 5.45 Billion STRK’a are untracked.

Among the highlighted projects, Starknet would unlock $64 Million STRK cryptos, worth around $83.8 Million, on June 15th, 2024. Alongside STRK, other projects, including ARB, OP, IMX, And MANTA, would also benefit from the event. These events are anticipated to bring considerable activity and volatility to the crypto market.

Technical Overview: Can STRK Crypto Attain 2x gains?

Starknet (STRK) started from a bull run in March and rose fabulously to the $2.65 price by March 13th, 2024. This surge was more than 1200%. The bulls were not sustainable then and deteriorated in a declining wedge, and the price corrected slowly until it reached and formed support at $1.05 by May 20th, 2024.

Moreover, after 21st May, the price has been in a consolidation box, which appears to have breached the wedge, with a slide bullish move in the box. This scenario illustrates that the bulls hold the key support of $1.05, and bears are desperately trying to breach the support. However, bears are not strong enough to break the support level of $1.05. It could be a major sign of a resurgence, as the price needs to be pushed to break the consolidation box range and aim for 100% growth on the daily chart.

Analyst Ijaz  Awan posted an optimistic tweet that STRK exhibits that if it manages to maintain this momentum, the price could see a move towards the $2.67 mark over the daily chart. It could trigger a strong bullish spike out of this consolidation box.

At press time, STRK fell by 1.99% in the last 24 hours, trading at $1.181. Indicators like EMA, MACD, and RSI are neutral due to consolidation. Therefore, as per the hypothesis, if the demand for the asset rises abruptly, then Starknet (STRK) could bounce back from the current level. The next target for the STRK could be to reach $1.80 and $2.60.

However, if the Starknet (STRK) fails to maintain above the $1.05 level, it could also decline further.

Summary

The Starknet (STRK) has experienced a significant increase in trading volume alongside healthy developer activity. The upcoming token unlocks for several Layer 2 blockchain projects, including Starknet, are anticipated to bring considerable activity and volatility to the crypto market. 

The price of STRK experienced a bull run, followed by a decline and a period of consolidation. Analysts are optimistic about the potential for a bullish spike in the price, with a target of reaching $2.67. Currently, the price is at $1.181, and indicators suggest a neutral position due to consolidation, with the potential for a bounce back if demand increases abruptly.

Disclaimer

In this article, the views, and opinions stated by the author, or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.