Over the past 24 hours, a few altcoins have outperformed Bitcoin, including Starknet (STRK), which saw 15% gains. STRK price extended its weekly rally by around 25%, with volume jumping 110%.
A change in market sentiment on Starknet following the Shinobi upgrade spurred the rally. The activities following this upgrade fueled strong trading activity for the altcoin.
How the Shinobi upgrade drives the STRK price up
According to Starknet’s article on X, the Shinobi upgrade has gone live on the mainnet, introducing the privacy infrastructure natively to the network.
Traders could now prove transactions on-chain without exposing the entire balance sheet or activity behind it. The tokens involved were STRK20 and strkBTC, which created ERC-20 support.
The team announced that it will reveal the capabilities of STRK20 and strkBTC in the coming weeks. These developments are likely why the team moved a massive amount of STRK tokens to a multisig wallet.
According to Arkham, the team first moved 100 STRK worth $3.27 last week, likely as a test trade. Following Shinobi’s upgrade to the mainnet, an additional 1.5 billion STRK tokens worth $55.13 million were transferred.
The movement supported Starknet’s plan to integrate Bitcoin transactions, privacy, and ERC-20 support. Additionally, this could be a long-term buildup as the team anticipates an increase in network activity.
But over the past five months, price developments have not been the best. Could these network developments serve as a catalyst for Starknet price action?
Understanding Starknet’s 30-Day Price Action
On the chart, Starknet has consolidated between $0.0320 and $0.0358 since late March, with price action breaking out in mid-April. STRK pulled back after the breakout and rebounded from the 0.618 Fibonacci retracement level.
Cumulative Volume Delta (CVD) showed bulls dominating with a difference between buying and selling of 11.27 million STRK tokens.
However, CVD has declined from the daily high of 26 million STRK tokens, indicating that some traders have started to make profits.
The RSI divergence signal remained bullish as the price continued its second rise. However, the second step is to see a rejection at the March highs above the $0.04 area.
As some traders take profits and speculation calms down, the altcoin could correct to the same Fibonacci levels as the initial move. This means that STRK price could reach $0.038 or lower before breaking above $0.0434.
This would represent a price correction of around 50%+.
Final summary
- Starknet Rallies 15% Amid Shinobi Upgrade and Massive Token Movement.
- STRK price is rejected at $0.040, which could trigger a 50% correction before continuing.
