The cryptocurrency market has experienced a painful correction in the past few weeks, with many leading digital assets plunging by double digits.
However, this has not been the case for Starknet (STRK), which defied the hostile environment and registered a whopping 100% pump over the last month.
Just the Beginning?
STRK was worth around $0.12 toward the end of September, while its market capitalization hovered around $500 million. At that time, the team behind Starknet revealed that it had introduced Bitcoin staking on its network.
The initiative is part of the project’s ultimate goal to become the execution layer for the primary cryptocurrency, “using zero-knowledge (ZK) tech to scale Bitcoin trustlessy and enable private transactions.”
The development was backed by Re7 Capital, which operates a fund with more than $1 billion of assets under management. In addition, the Starknet Foundation promised to distribute 100 million STRK coins to kickstart activity around Bitcoin on its network.
The announcement seems to have triggered a substantial rally for Starknet’s native token, whose valuation surged to almost $0.20 at the beginning of October. In the following weeks, the asset experienced significant volatility but eventually resumed its upward move and is now trading at roughly $0.23 (per data), representing a triple-digit increase over the past 30 days. Meanwhile, its market capitalization surpassed $1 billion, thus making STRK the 100th-largest in the entire sector.
The solid performance amid the broader crypto market’s downturn has caught the eye of multiple industry participants. One industry observer described STRK as “the next ZEC,” predicting a rally to $0.50 “in no time.” Recall that Zcash (ZEC) stunned the crypto community by exploding by over 1,000% in the last two months.
Another analyst argued that the STRK “train has left the station” and envisioned a jump to $0.62 in the following weeks.
The Cautious Forecast
One observer said STRK’s chart is looking “nice,” but had some doubts about whether the rally is sustainable.
“Will it hold? Not sure, given current conditions, but the chart looks bullish locally for now unless it breaks down.”
Furthermore, STRK’s Relative Strength Index signals that the valuation may head south soon. The technical analysis tool, which measures the speed and magnitude of recent price changes, ranges from 0 to 100 and gives traders an idea about potential reversal spots.
Ratios above 70 indicate the asset is overbought and poised for a pullback, whereas readings below 30 are often seen as a buying opportunity. Currently, STRK’s RSI stands at around 80.
