Starknet: Long Positions Liquidated Lead To 16% Losses

2024-10-06 22:00:28

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Starknet (STRK) faces huge losses as it follows the market-wide correction phase that shook investor portfolios. The unexpected movement caused the token to fall by nearly 16% causing a whopping $87k wipeout of STRK long positions in the past 24 hours

Surprise, Surprise For Investors

Despite the market’s bearishness, STRK bulls pulled a small win in the shape of a localized breakthrough on the $0.3891 resistance level which might translate to big gains in the coming days. However, this can only occur if the token stabilizes above $0.3891 in the short to medium term

With the token possibly entering a crucial crossover point hinted at by STRK’s relative strength index, a bullish reversal might be around the corner for investors. But this may only come if the market flips on the side of the bulls

As of writing, Bitcoin, the biggest cryptocurrency in the world, is currently moving in the same zone as well

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

STRK is currently trading at $0.40. Chart: TradingViewBut with investors split between investing or pulling out of the market, it might take a while before STRK experiences a jump in price that will wipe out last week’s losses. For the current losses to be completely reversed, the token needs to attempt a breakthrough on 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

Since the start of October, several X personalities have noticed that Starknet’s total value locked (TVL) has grown significantly. From September 6th’s $128.47k to over $1.05 million today, representing a nearly 700% increase in under a month

This came in line with Starknet’s initial step in decentralizing the network. In this initial phase, community members can enter two roles: delegators and validators. However, investors should not expect much from the current implementation of decentralization as “the timeline for this is not yet defined and will undoubtedly take some time to implement.”

Featured image from Medium, chart from TradingView

STRK-4,51%

TOKEN-1,71%

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