Despite the broader market slump in the altcoin sector, Ethereum layer-2 scaling solution Starknet (STRK) rallied over 11% during the weekend. Crypto.news price data reports that Starknet reached an intraday high of $0.444 on Friday, 28% above its weekly low.
The remarkable surge demonstrates a strong upward momentum for the asset class despite the general downturn experienced in the broader altcoin market. Meanwhile, analysts suggest that STRK could pass the crucial resistance level of $0.45 and aim toward a new target.
Why Starknet Is Rising While Altcoins Decline
Experts think a leading factor behind STRK's bullish activities is the ecosystem's recent growth. The ecosystem's total value locked (TVL) surged to $238.41 million, a whopping 549% increase from the $36.91 million it reported at the turn of the year.
The growing TVL suggests growing investor confidence in the ecosystem, further contributing to STRK's continued gains.
Beyond the impact of growing investor confidence that boosted the system’s TVL, analysts link STRK’s recent rally to Ethereum co-founder Vitalik Buterin unlocking $470,000 worth of STRK tokens. The said action ignited a boost in trading activity and interest that boosted the asset’s profile and market value.
Additionally, Starknet's recent completion of the Bolt Upgrade service improved the network's speed and reduced costs by permitting parallel execution and block packing. Thanks to reignited optimism, the asset saw a 140% jump in trading volume within 24 hours, further driving its bullish momentum.
Meanwhile, crypto analysts like Falcao and Cryptojack say the recent rally is approaching the key horizontal resistance level of $0.45 in an X post. Falcao predicts that STRK will break out above this point as trading volume increases and sees a significant price surge. Should the asset break beyond this level, it is poised to exit its current range-bound pattern as it pursues a new target of around $0.60.
Starknet is a "Validity Rollup that provides unlimited scale while retaining Ethereum's security and decentralization." Data from the 1D STRK/USDT chart show that the token's Relative Strength Index has risen to 60, confirming a bullish trend with significant hopes of growing before reaching overbought conditions.
Final Thoughts
STRK gained an 11% surge over the weekend, defying a general altcoin market slump to approach the $0.45 resistance level – a point where it has repeatedly experienced selling pressure. Should its token's recent bullish run continue, crypto enthusiasts can expect more notable gains from the burgeoning asset, potentially targeting the next resistance level at 0.60%, despite a general downturn in the altcoin market.