Starknet’s STRK token is showing tentative signs of a bullish reversal after successfully defending a critical support level at $1.20, according to technical analysts. The Ethereum Layer-2 scaling solution’s native cryptocurrency has gained 8% over the past 24 hours amid broader market recovery.
Market data shows STRK found strong buying interest at its 200-day moving average, a key technical indicator watched by traders. “The defense of this level suggests accumulation by institutional players,” said a cryptocurrency analyst at a Singapore-based trading firm who requested anonymity due to company policy.
Starknet’s fundamentals appear mixed. While the network recently processed over 1 million transactions daily, concerns linger about adoption rates. “Layer-2 solutions face intense competition,” noted blockchain researcher Elena Petrov in a CoinTelegraph interview. “Starknet’s technology is strong, but network effects take time.”
Future price movement may depend on two factors: whether Bitcoin stabilizes above $70,000 and Starknet’s upcoming protocol upgrade. The v0.13.1 update promises significant gas fee reductions, which could boost developer activity. However, some traders remain cautious. “This could just be a dead cat bounce,” warned derivatives trader Mark Chen, pointing to still-elevated short positions in STRK futures.