Starknet’s (STRK) Price Bounces: Is $3 Feasible In the Short Term?

The price of STRK, the token of the recently launched Ethereum Layer 2 project Starknet, has increased by 2.76% in the last 24 hours. This surge was proof that the token had experienced significant relief after the Starknet team adjusted its token unlock schedule.

Previously, Starknet had set an unlock schedule that did not sit well with the community. After a series of back-and-forths, the team decided to revise the timetable. Besides this move, there seems to be a lot of development activity on the Starknet network.

According to an investor with the X handle ‘Crypto Rand’, the Starknet ecosystem looks “epic” from a development standpoint. Development activity can either be bullish or bearish for a project. If developers ship few or unpopular features on a network, then this can fuel a bearish bias.

💥 The #Starknet $STRK ecosystem looks epic. pic.twitter.com/tTxz26yPMI

— Crypto Rand (@crypto_rand) February 25, 2024

However, the rise in development activity implies that code commits on Starknet have been improving. Should this hike continue, then STRK’s price might bounce off the lows.

The Supertrend Says “Buy”

Indications from the 1-hour STRK/USD showed that the Supertrend had flashed a sell signal around $1.97 on February 26. This was because the red segment of the indicator appeared at the aforementioned price.

But at press time, a buy signal (green) popped up at $1.88. Moments later, STRK’s price jumped above $2 for the first in days. However, the price increase could be linked to the indication shown by the Relative Strength Index (RSI).

At press time, the RSI was 66.68, suggesting a solid bullish momentum. If the reading hits 70.00, STRK could be considered overbought. If this is the case, the price could slide below $2 again. However, the current market sentiment might not support that as STRK could climb much higher.

STRK/USD 1-Hour Chart (Source: TradingView)

A reasonable inference from the bounce could lead STRK toward $2.35. In a highly bullish case, the price could get close to $3. However, ETH could influence its price action since Starknet is an Ethereum Layer 2 blockchain. Should ETH’s price rise to $3,500, then STRK might also increase.

TVL Surpasses $1 Billion

In the meantime, Starknet seems to be excelling in other parts of its network. One of the areas Coin Edition found that the project registered a notable increase was its Total Value Locked (TVL).

According to L2BEAT, Starknet’s TVL recorded a 637% increase to $1.38 billion since its Mainnet launch. Transactions Per Second (TPS) also jumped by 67.85%. The TVL measures the value of assets locked in a protocol.

Starknet Total Value Locked (Source: L2BEAT)

If the metric had decreased, it would have implied that market participants were taking their assets out of Starknet. Since it increased, it meant that trust in Starknet has improved and participants have added more liquidity in anticipation of a better yield.

Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.

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