Starknet （STRK） is at risk of falling below its all-time low as buying pressure continues to decrease. The bearish trend and negative market sentiment suggest further declines for the Layer 2 token.
Points
- Starknet （STRK） facing declining buying pressure
- Risk of falling below all-time low of $0.46
- Bearish trend and negative market sentiment
- Potential price targets and resistance levels
- Analysis of RSI and funding rate indicators
Starknet （STRK）, the native token of the ZK-Rollup platform, is facing significant selling pressure, putting it at risk of falling below its all-time low of $0.46. Over the past week, STRK has struggled to maintain its value, reflecting a broader bearish trend and negative market sentiment.
On July 5, STRK plummeted to its all-time low of $0.46. Although it has since rallied by 14%, the token remains under pressure, with its current price hovering around $0.53. The steady rise in selling pressure and declining buying interest suggest that STRK may soon test new lows.
The Relative Strength Index （RSI） for STRK is currently at 36.77, indicating that the token is close to oversold territory. While this could imply a potential buying opportunity, the overall market sentiment remains negative, with weighted sentiment at -0.29. This negative sentiment reflects fear, uncertainty, and doubt among market participants, further contributing to the downward pressure on STRK’s price.
Coinglass data shows that STRK’s funding rate is -0.01%, indicating that more traders are opening short positions, expecting the token’s price to fall further. If this bearish sentiment persists, STRK could drop to a low of $0.19, a level it last reached in January.
However, a shift in sentiment from bearish to bullish could see STRK’s price rise above $2. For this to happen, there needs to be a significant increase in buying pressure and a reversal of the current negative market outlook.
In summary, Starknet （STRK） is at a critical juncture. The token faces substantial bearish pressure and negative sentiment, suggesting a potential decline to new lows. However, a reversal in market sentiment and an increase in buying pressure could change the outlook, offering a potential recovery for STRK.
Explanation
- ZK-Rollup: A type of Layer 2 scaling solution for Ethereum that increases throughput by bundling multiple transactions into a single batch, which is then processed off-chain and verified on-chain using zero-knowledge proofs.
- Relative Strength Index （RSI）: A momentum oscillator that measures the speed and change of price movements. Values above 70 indicate overbought conditions, while values below 30 indicate oversold conditions.
- Funding Rate: The periodic payments made between traders in a futures market to maintain the price of the futures contract close to the spot price of the underlying asset. A negative funding rate indicates that short positions are paying long positions, suggesting bearish sentiment.