Key Takeaways
Is Starknet ready for a new rally?
Yes, the retest of the former range highs as a demand zone, and the current bullish momentum showed that STRK was ready to rally higher.
How high could this rally go?
Fibonacci extension levels showed that the $0.29 and $0.34 levels were the next bullish swing targets.
Starknet [STRK] was trending higher once again. It was up 21.5% in 24 hours, aided by a modest 1.54% price bounce for Bitcoin [BTC].
Altcoins with strong buyers tend to do well when Bitcoin prices stabilize or climb higher.
That was what Starknet bulls were experiencing. In a recent AMBCrypto report, the $0.19 region was highlighted as a key demand zone. It has been retested as such, and the buyers have responded with strength.
Smart money also recognised the STRK trade as profitable. Lookonchain observed that a trader opened a long position worth $6.7 million three days ago.
With a 5x leverage and an entry at $0.14, it was not sitting on $2.5 million in profit.
Why a 33%-55% Starknet rally could commence hereon
Source: STRK/USDT on TradingView
The 4-hour chart reflected a bullish structure, with a series of higher swing highs and swing lows in November.
At the time of writing, the $0.197 range high, which had acted as resistance ten days ago, had been defended as support.
Following this defense, the MACD was on the verge of forming a bullish crossover. This was another sign of upward momentum.
However, the CMF showed a reading of -0.09. This indicated a lack of steady demand and was a warning sign to the bulls.
A set of Fibonacci retracement and extension levels was plotted using the rally from the range low to the high earlier this month.
It showed that the 23.6% extension level at $0.2466 was a resistance, which caused the recent retracement.
The subsequent recovery meant that the next bullish price target was the 61.8% and 100% extension levels at $0.2935 and $0.34, respectively.
The $0.2578 level was also a significant horizontal level, which marked a key lower high on the 1-day timeframe.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
