Starknet (STRK) recently launched the first phase of its staking program, triggering a 10% price surge in just one day. This sudden price movement has caught the attention of traders as the token approaches key resistance levels. Despite the strong momentum, technical indicators present a mixed view on the asset’s outlook.

The Relative Strength Index (RSI) is indicating an overbought condition, which suggests that STRK may struggle to maintain its upward trajectory. At the same time, the Chaikin Money Flow (CMF) shows only moderate buying pressure, raising questions about the sustainability of the current rally.

Starknet RSI indicates overbought

Starknet’s RSI has risen from 48 to 77 in just two days, indicating that the price has seen a significant increase in a short period. Therefore, this sharp increase suggests that Starknet is now in overbought territory, which could signal a price correction.

In short, the RSI is a technical indicator that measures the speed and magnitude of price changes. It operates on a scale of 0 to 100, with levels above 70 considered overbought and below 30 considered oversold.

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STRK RSI. Source: TradingView.

If Starknet’s RSI declines from its current level, it could provide a cooling-off period. This could give the price room to stabilize and potentially attract new buyers at lower levels. However, if the RSI remains above 70, it could indicate that buying pressure has peaked. This could limit the sequence of upward movements and even trigger a sell-off.

STRK’s Chaikin Money Flow is Moderately Positive

STRK’s Chaikin Money Flow (CMF) is currently at 0.06, showing positive but mild buying pressure. While this suggests there is some interest in the asset, the buying pressure is not particularly strong, meaning capital inflow is modest.

The CMF is a widely used technical indicator that combines price and volume data to determine whether money is flowing into or out of an asset. It operates on a scale of -1 to +1, with values ​​above 0 showing net buying pressure and values ​​below 0 indicating net selling pressure.

A reading closer to +1 signals strong buying interest, while closer to -1 suggests significant selling. With STRK’s current CMF at 0.06, the market is showing some support from buyers, but it is not extremely bullish.

STRK Chaikin Money Flow. Fonte: TradingView.

For the STRK price to maintain a steady increase or even continue to rise significantly, it would typically require stronger buying pressure. A CMF value of 0.06 could indicate that while there is some demand, it is not enough to fuel a rally or protect the price from falling if selling pressure begins to increase.

Price forecast

There are strong resistance levels for Starknet (STRK) at $0.51 and $0.59, where a significant number of addresses are holding tokens at higher prices, potentially leading to selling pressure.

If these resistance zones are broken, STRK could move higher towards the next major resistance at $0.91, where fewer addresses are holding coins, allowing for the possibility of a quick price rally if buying pressure continues.

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STRK Global In/Out of the Money. Fonte: IntoTheBlock

The Global In/Out of the Money metric provides a useful insight into addresses that are holding STRK at various levels of profit. Addresses classified as “In the Money” (holding STRK at a profit) are likely to take profits as the price moves higher, contributing to resistance at key price levels. Conversely, “Out of the Money” addresses (holding STRK at a loss) may increase selling pressure as they seek to minimize their losses.

On the downside, the support zone between $0.41 and $0.45 is relatively weak, suggesting that this level could be tested soon. If buyers do not step in to support the price in this range, STRK could see a further decline, potentially reaching $0.38, where a larger concentration of holders is present. This cluster could act as a more reliable support level, providing some stability if the price pulls back.

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