Starknet 's STRK just recovered 13% in the session, but the upward momentum still depends on whether the price can break through key technical resistance levels.
This development is noteworthy because STRK has fallen by nearly 59% over the past year, while short-term indicators suggest improving buying pressure. However, on-chain data has yet to Unconfirmed a sustainable recovery.
- STRK surged 13% in the session after breaking out of a cup and handle pattern on the chart.
- The Fibonacci 1.0 resistance level is the threshold that needs to be breached before the price can advance to higher levels around $0.065.
- MACD and CMF are trending upward, but Starknet's TVL is still down from its peak and has not yet shown signs of strong Capital inflow.
STRK has just broken out of an uptrend pattern on the chart.
STRK bounced up after breaking through the resistance of the cup-and-handle pattern, a structure often XEM as a signal of continuation of an uptrend.
With a 13% increase during the session, the market is reacting to this technical signal. However, the Fibonacci 1.0 resistance zone remains a significant barrier before the trend can extend further.
If it breaks through this zone, STRK could head towards higher levels around $0.065 on the chart. Conversely, failure to break through resistance could cause the price to revert to a sideways trend or correction.
Momentum indicators are leaning toward an uptrend.
The MACD now shows a clearer bullish structure, with a Golden Cross supporting the recent rally.
The CMF has also moved into positive territory, at around 0.12, indicating that buying pressure is slightly outweighing selling pressure. If the green histogram bars continue to expand, the probability of maintaining the upward momentum will be higher.
However, this is only a supporting signal for the price, not a confirmation that the uptrend is sustainable. Investors will usually need further confirmation from both price and volume .
Starknet's on-chain Capital remains weak.
On the on-chain side, the picture isn't exactly strong. The total value locked in Starknet has dropped by approximately $117.92 million from its peak on January 17th, indicating that Capital are still having an impact.
TVL currently stands at approximately $205.47 million, up only 1% in the last 24 hours. Meanwhile, DEX volume on the network has steadily increased from around $3.15 million on May 2nd to $8.79 million at the time of recording.
The discrepancy between positive technical signals and a weak on-chain Capital base suggests that STRK's rebound still needs further confirmation. If network Capital do not improve, the upward momentum may be difficult to sustain for long.
Summary
STRK is showing signs of a short-term recovery from both price charts and momentum indicators, but on-chain strength has yet to catch up. The next resistance level and TVL developments will be two key factors to watch closely.
