Can Starknet (STRK) Mainnet Upgrade Trigger a Bullish Reversal?

Ethereum
layer-2
network
Starknet
(STRK)
has
struggled
since
its
token
launch
in
February.
This
issue
is
one
reason
only
8% of
STRK
holders
are
in
profit.

Despite
the
drawdown,
it
appears
that
the
cryptocurrency
holders
have
decided
to
test
the
waters
by
steering
clear
from
selling.
Meanwhile,
this
on-chain
analysis
reveals
more.

Starknet
Hopes
to
Reclaim
Its
Lost
Fortunes

A
few
days
ago,
Starknet
disclosed
the
successful
launch
of
the
Parallel
Execution
and
Block
Packing
upgrade
on
Testnet.
The
upgrade,
geared
toward
gas
fee
reduction
and
a
two-second
block
confirmation
time,
will
go
live
on
Mainnet
on
August
28.

Following
the
Testnet
announcement,
IntoTheBlock
data
shows
there
is
an
increase
in
the
number
of
addresses
holding
STRK
between
the
last
30
days
and
the
last
365
days. 

While
the
reason
for
this
remains
uncertain,
the
increase
clearly
indicates
that
holders
remain
optimistic
about
the
token’s
future
potential.
Likewise,
it
suggests
that
they
are
not
ready
to
give
in
to
the
losses,
regardless
of
the
downturn
experienced.

Read
more: A
Deep
Dive
Into
Starkware,
StarkNet,
and
StarkEx

This
resolve
could
be
termed
surprising
considering
the
controversies
Starkenet
has
been
involved
in.
For
instance,
early
adopters
of
the
project
were
unsatisfied
with
the
airdrop
distribution
in
February. 

Furthermore,
the
project
experienced
a
notable
plunge
in
user
engagement,
and
more
recently,
the
CEO
stepped
down.
Interestingly,
on-chain
data
reveals
that
there
has
been
a
notable
improvement
in
network
activity.

Specifically,
new
addresses,
which
refer
to
the
number
of
participants
completing
their
first
successful
transaction,
have
increased
by
30.25%
within
the
past
week. 

Similarly,
active
addresses,
a
metric
measuring
the
number
of
senders
and
receivers
on
a
blockchain,
also
jumped.
If
sustained,
the
rise
in
these
figures
is
a
bullish
sign
for
Starknet
and
its
native
token.

STRK
Price
Prediction:
The
Token
Eyes
the
Upper
Resistance

At
press
time,
STRK’s
price
trades
at
$0.39,
making
it
one
of
the
biggest
gainers
in
the
top
100
of
the
last
24
hours.
Based
on
the
daily
chart,
the
cryptocurrency
formed
a
descending
triangle
between
June
5
and
August
3.

A
descending
triangle
is
a
bearish
chart
pattern
characterized
by
a
series
of
Lower
Highs
(LH)
and
a
resistance
level
at
the
crest.
Earlier,
STRK
broke
down
below
this
region,
suggesting
that
the
downtrend
may
continue.

But
as
of
this
writing,
the
cryptocurrency
seems
poised
to
rise
above
the
pattern.
Signs
also
emerged
that
it
is
in
price
discovery
mode
as
the
Money
Flow
Index
(MFI)
reading
is
16.20.

Apart
from
measuring
buying
and
selling
volume,
the
MFI
evaluates
if
a
cryptocurrency
is
overbought
or
oversold. 
Values
at
80.00
or
above
mean
it
is
overbought,
while
those
at
20.00
or
below
indicate
that
it
is
overbought.

Read
more: ZkEVMs
explained:
Enhancing
Ethereum
Scalability

According
to
this
law,
STRK’s
price
is
oversold,
and
a
notable
bullish
reversal
could
be
on
the
cards.
Thus,
if
buying
pressure
increases, 
the
token’s
value
may
rally
toward
the
overhead
resistance
at
$0.62
in
the
short
term. 

Additionally,
the
successful
completion
of
the
Parallel
Execution
and
Block
Packing
upgrade
on
Mainnet,
coupled
with
high
demand,
could
drive
the
price
toward
$0.94.
However,
if
confidence
drops
among
holders, selling
pressure
may
come
into
play,
and
the
price
could
drop
to
$0.34.