**Ethereum Layer-2 Network Faces Challenges**
Since its token launch in February, Starknet (STRK) has faced significant challenges, with only 8% of holders currently in profit. Despite this, many holders are choosing to hold onto their tokens rather than sell.
**Starknet's Path to Recovery**
Recently, Starknet announced the successful launch of the Parallel Execution and Block Packing upgrade on its Testnet. This upgrade aims to reduce gas fees and achieve a two-second block confirmation time, with the Mainnet launch scheduled for August 28⁴.
**Increased Holder Activity**
Data from IntoTheBlock shows a rise in the number of addresses holding STRK over the past 30 and 365 days. This suggests that holders remain optimistic about the token's future potential, despite past controversies and challenges, such as dissatisfaction with the airdrop distribution and a decline in user engagement⁴.
**Network Activity on the Rise**
On-chain data reveals a significant increase in network activity. New addresses, representing participants completing their first transaction, have surged by 30.25% in the past week. Additionally, active addresses, which measure the number of senders and receivers, have also increased⁴.
**STRK Price Prediction: Eyeing Resistance Levels**
Currently trading at $0.39, STRK is one of the top gainers in the last 24 hours. The daily chart shows a descending triangle pattern, typically a bearish signal. However, STRK appears poised to break above this pattern, with the Money Flow Index (MFI) reading at 16.20, indicating it is oversold⁴.
If buying pressure increases, STRK could rally towards the overhead resistance at $0.62 in the short term. The successful Mainnet upgrade and high demand could push the price further to $0.94. Conversely, if confidence among holders drops, the price could fall to $0.34⁴.
SOURCE: beincrypto
source of images is TradingView