Despite a recent sharp 30% decline, Starknet (STRK) is displaying compelling signals that suggest a potential bullish rebound. This downturn, triggered by a broad market liquidation, hasn't deterred a significant segment of investors, with several on-chain and technical indicators pointing towards an impending recovery for the asset.
Resilient Investor Sentiment and Demand
Even as STRK's price plummeted, the underlying investor confidence appears robust. The number of STRK holders has surged to an unprecedented 28,530, indicating a growing demand and accumulation of the asset despite market volatility. Crucially, the Long-to-Short ratio has remained positive throughout this tumultuous period, signifying that buying volume continues to outweigh selling pressure. This suggests that recent sell-offs were likely driven by fear rather than a fundamental shift in investor outlook, leaving a substantial $65 million in circulation and hinting at strong underlying support for a price rally.
Strengthening Technicals and Surging Network Utility
Technical indicators further reinforce the optimistic outlook for STRK. The Money Flow Index (MFI) is trending upwards at 44.61, signaling a consistent inflow of liquidity into the asset. Should it cross above 50, it would confirm a full resurgence of bullish sentiment. Similarly, the Average Directional Index (ADX) is also on an upward trajectory, highlighting the strength of the current bullish candlestick and hinting at sustained upward momentum. Complementing these technical signs, on-chain activity for STRK has reached new heights. The protocol recorded its highest monthly revenue to date, hitting $20,300. This remarkable growth is largely driven by a substantial surge in daily transactions, which climbed to 565,800 in the past day, showcasing the expanding utility and adoption of the Starknet network. These combined fundamental and technical strengths position STRK for potential upside movement, provided it can overcome immediate technical resistance levels.
