As a seasoned crypto investor with scars from more market corrections than I can count, I’ve learned to navigate these turbulent waters with a combination of patience, resilience, and a touch of humor. The recent 16% plunge of STRK has undeniably caused a significant dent in my portfolio, but it’s just another day in the life of a crypto investor.
In simple terms, Starknet (STRK) experienced significant losses due to the widespread correction phase in the market. This sudden shift led to a decrease of approximately 16% in the token’s value, resulting in a substantial $87k worth of long positions on STRK being liquidated over the past 24 hours.
In simpler terms, the market’s present state could lead to substantial losses for optimistic investors if the overall investor attitude doesn’t become more positive in the near future. This week, there seems to be no strong evidence supporting a bull market surge, which is why STRK has started off weakly, as investors remain wary of the market’s fluctuations due to its unpredictability.
Surprise For Investors
Regardless of the market’s bearish trend, STRK bulls managed a minor victory with a brief breakthrough at the $0.3891 resistance level. This could potentially lead to significant growth in the near future, but only if STRK maintains its position above $0.3891 for a short to medium period.
As STRK‘s relative strength index suggests a potential pivotal turning point, there could be an upcoming bullish shift for investors. However, this is contingent upon the market shifting in favor of the bulls.
In the course of my current study, I find myself observing that Bitcoin, the globally dominant cryptocurrency, appears to be following a similar trajectory at present.
The broader financial market’s current bullishness might leak to the crypto market through Bitcoin’s correlation with major finance indices like the S&P 500 and Dow Jones index, both are up a few hundred points in the past 24 hours.
However, as some investors are contemplating investment or withdrawal from the market, it could take some time before STRK witnesses a significant price increase that erases last week’s losses. For the current losses to be completely offset, the token must first manage to surpass the $0.5083 resistance level.
However, STRK’s current trajectory may only permit a move above the $0.3891 support level. Once the token stabilizes on this support level, STRK bulls might find new strength, targeting $0.4628 in the medium to long term.
New Developments Might Solidify Investor Sentiment
Despite the market’s bearishness, several developments happened that will help investor sentiment remain on the side of Starknet in the long run.
what they doin’ ova there?@strkfarm TVL goes ballistic
— 0d1n fr33 (@odin_free) October 5, 2024
Over the past few weeks, multiple individuals have observed an impressive surge in Starknet’s Total Value Locked (TVL). Starting from September 6th with a value of around $128,470, it has now exceeded $1.05 million, marking a nearly 700% increase within just under a month.
This development aligns with Starknet’s first move towards network decentralization. In the early stages, community participants can assume two roles: delegators and validators. It’s important to note that while this decentralization process has begun, investors should not anticipate immediate results as the timeline for full implementation is still unclear and will likely require a significant amount of time.
Read More
Sorry. No data so far.
2024-10-07 09:22