Starknet’s STRK token has lost nearly 10% of its value just a week after the ZK-Rollup platform began its first phase of staking. STRK is currently trading at $0.38. In the last 24 hours, STRK’s price has dropped 16%, making it the third-biggest loser behind Beam (BEAM) and Arweave (AR).
Sitting below the critical resistance level, a further surge in selling pressure could push the STRK price to retest its all-time low at $0.31.
Starknet Bears Defend Resistance
STRK’s one-day chart reading shows that its price is currently hovering below the resistance formed by the Ichimoku Cloud at $0.43. When the price of an asset is below this cloud, it indicates that sellers are in control, and any attempts to move higher are met with resistance within or just above the cloud.
Traders view the cloud as a serious barrier, and it is difficult to break through it higher without a strong buying impulse.
Read more: Deep dive into Starkware, StarkNet and StarkEx.
Moreover, the decline in Chaikin Cash Flow (CMF) STRK reflects the lack of buying pressure to overcome this key resistance level. This indicator, which measures the flow of money into and out of the market, recently fell below the zero line. At the time of publication -0.03, selling pressure exceeds buying activity among STRK traders.
A negative CMF value indicates greater capital outflows than inflows. This means that traders are selling more of an asset than they are buying, causing the price to decline.
STRK Price Forecast: Bulls Must Protect Cloud
If selling pressure intensifies and STRK bulls fail to push the price above the cloud, the downtrend is likely to strengthen. The coin’s next target could be the all-time low of $0.31, last seen on August 5th.
Read more: What is crypto staking? Guide to Earning Passive Income
STRK price analysis. Source: TradingView
On the other hand, if there is a surge in buying activity, the STRK price could attempt to rise above the cloud, potentially reaching $2.25, the high recorded in March.
