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Starknet (STRK) May Fall Below All-Time Low With Decreasing Buying Pressure

2 mins
Updated by Ryan Boltman
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In Brief

  • Starknet's native token, STRK, is at risk of falling below its all-time low of $0.46 due to persistent selling pressure and a bearish market sentiment.
  • Currently, its RSI is at 35.84, nearing oversold conditions that could trigger a price increase if buying interest resumes.
  • However, if negative sentiment persists, STRK may decline further to $0.19.
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STRK, the native token of the ZK-Rollup platform Starknet, has witnessed a decline in its value in the past week due to falling buying pressure, which has persisted over the past few weeks.

If the current bearish trend continues, the Layer 2 (L2) token could potentially breach its all-time low, which it recently fell to.

Starknet May Drop Below Its All-Time Low

On July 5, STRK plummeted to an all-time low of $0.46. While its value has since rallied by 14%, the L2 token remains at risk of shedding these gains and falling below the $0.40 price level. 

This is due to the steady rise in the altcoin’s selling pressure. As of this writing, STRK’s Relative Strength Index (RSI) is in a downtrend and far from its 50-neutral line at 36.77.

Starknet Analysis. Source: TradingView
Starknet Analysis. Source: TradingView

An asset’s RSI measures the speed and change of its price movements. It ranges between 0 to 100 and is used to identify overbought or oversold conditions in a market. 

At 36.77, STRK’s RSI suggests that market participants have favored selling over buying, putting downward pressure on its price.

This level is close to the oversold threshold of 30, which indicates that the asset might be undervalued and could see a price increase if buying interest picks up. However, the negative sentiment that currently trails STRK may be impossible in the near term. At press time, STRK’s weighted sentiment is -0.29.

Read More: A Deep Dive Into Starkware, StarkNet, and StarkEx

Starknet Weighted Sentiment. Source: Santiment
Starknet Weighted Sentiment. Source: Santiment

An asset’s weighted sentiment metric tracks the overall mood of the market regarding it. When the value of an asset’s weighted sentiment is below zero, most social media discussions are fueled by negative emotions like fear, uncertainty, and doubt. It is often interpreted as a precursor to a price decline or a confirmation of a downtrend.

STRK Price Prediction: Bearish Sentiments Flourish in Derivatives Market

The bearish sentiment trailing STRK can be gleaned from the many short positions opened in the 24 hours. According to Coinglass, the token’s funding rate is -0.01% at press time.

Starknet Funding Rate. Source: Coinglass
Starknet Funding Rate. Source: Coinglass

When an asset’s funding rate is negative, it reflects bearish sentiments. This means there are more traders who expect the asset’s price to fall than those who buy the asset hoping to sell it for profit.

If the bearish sentiments persist and selling pressure continues to increase, STRK may fall to a low of $0.19, a price level it last reached in January.

Read More: Best Upcoming Airdrops in 2024

Starknet Analysis. Source: TradingView

However, if sentiments shift from bearish to bullish, the token’s price may rise above $2.

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Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

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Abiodun Oladokun
Abiodun Oladokun is a technical and on-chain analyst at BeInCrypto, where he specializes in market reports on cryptocurrencies from diverse sectors, including decentralized finance (DeFi), real-world assets (RWA), artificial intelligence (AI), decentralized physical infrastructure networks (DePIN), Layer 2s, and meme coins. Previously, he conducted market analysis and technical assessments of various altcoins at AMBCrypto, utilizing on-chain analytics platforms like Messari, Santiment...
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