STRK Price Prediction: The Bulls Must Defend the Cloud

Starknet’s STRK token has lost nearly 10% of its value just a week after the ZK-Rollup platform initiated its first phase of staking.

Starknet’s STRK token continued its downward spiral on Monday, with its price plunging by 16% in 24 hours. The token, which is used to power the ZK-Rollup platform, has now lost nearly 10% of its value a week after Starknet began the first phase of its staking initiative.

Currently trading at $0.38, STRK’s price is positioned below a critical resistance level. If selling pressure continues to rise, the token’s price could retest its all-time low of $0.31.

Starknet Bears Defend Resistance

According to readings from STRK’s 1-day chart, its price is currently hovering below the resistance formed by its Ichimoku Cloud at $0.43. When an asset’s price is below this cloud, it usually indicates that sellers have control.

In STRK’s case, any attempts to push higher are being met with resistance from within or just above the cloud. This makes it difficult for the token to rise without a strong surge in buying momentum.

Traders often view the cloud as a significant technical barrier, and breaking through it to the upside usually requires strong buying pressure to sustain the upward price movement.

Moreover, STRK’s declining Chaikin Money Flow (CMF) further reflects the lack of buying activity needed to push above this key resistance level. This indicator, which measures money flow into and out of the market, recently broke below the zero line. At -0.03 at press time, this indicates that selling pressure is outpacing buying activity among STRK traders.

A negative CMF value indicates more capital outflow than inflow. This means traders are selling more of the asset than they are buying, leading to a price decline.

STRK Price Prediction: The Bulls Must Defend the Cloud

If selling pressure continues to intensify and STRK bulls are unable to push the token’s price above the cloud, the downtrend will likely gain momentum. The coin’s next target could be its all-time low of $0.31, which was last seen on August 5.

On the other hand, if a surge in buying activity occurs, STRK’s price may attempt to rally above the cloud, potentially reaching $2.25 — a high last recorded in March.