Starknet breaks out after surpassing the 7-month accumulation zone

Starknet (STRK) recorded an impressive growth of 40% in just 24 hours, while the daily trading volume also rose to the sky, according to data from CoinMarketCap. During the same period, the open interest (OI) of STRK increased by 51%, however, the funding rate turned negative.

This shows that the short positions (short) are being overloaded, while reflecting the sentiment of futures traders that the price of STRK may soon adjust downward.

However, the actual figures indicate that the demand for purchasing in the spot market for STRK remains very strong, setting the stage for the possibility of a short squeeze.

The rise of STRK is driven by several factors, notably the high staking token rate and the continuously increasing total locked value (TVL), signaling a growing number of users.

Breakout signals from the accumulation zone on the larger time frame

On the weekly chart, Starknet has undergone a 7-month accumulation phase, fluctuating in the price range of $0.097 to $0.197. At this moment, a closing session above the high price range of the accumulation zone is forming and is expected to complete in the next few hours.

Source: TradingViewThe combination of high trading volume and the breakout from the accumulation zone provides extremely positive signals for long-term investors. For new traders, this is still a suitable time to enter the market.

However, they need to be patient and wait for corrections on lower time frames to find optimal entry points.

Old resistance zone becomes a strong support zone

The RSI indicator has surpassed the neutral threshold of 50, and the OBV has also risen to the sky, reinforcing the strength of the upward trend on the price chart. The next important price levels on the weekly chart are identified at $0.539 and $0.8.

Source: TradingViewNotably, the previous resistance area around the $0.19 level has now turned into a strong support zone. If the price returns to test this area, it will present an attractive buying opportunity for investors.

The potential for a short squeeze also means that traders using a scalping strategy may not experience the expected pullback. However, one should not let the fear of missing out (FOMO) dictate investment decisions.

In the coming week, if the upward trend continues to be maintained, the optimistic price targets for STRK will be $0.279 and $0.293.

Mr. Teacher