Key Points
- Despite large deposits of STRK into exchanges, the token’s price remains stable.
- STRK’s declining volume and increasing volatility may suggest potential price fluctuations.
Despite millions of Starknet [STRK] tokens being deposited into exchanges, the cryptocurrency’s price has remained resilient.
Two major STRK holders were believed to potentially cause a price drop, however, data indicates that the token’s value has held firm.
Large Deposits and Price Stability
On May 25th, it was discovered that Tenoe, a liquidator for Three Arrows Capital, deposited 2.18 million STRK into Binance.
Such large deposits are typically followed by a price decrease, but the Starknet token remained stable.
At the time of writing, the cryptocurrency’s price was $1.25, a 4.06% increase over the last 24 hours.
Impact of Ethereum Spot ETFs
Before the deposit, Ethereum‘s co-founder Vitalik Buterin claimed his 845,000 STRK airdrop, worth $1.07 million, causing the token’s value to drop by 6%.
However, Starknet’s value did not react similarly, likely due to the U.S. SEC’s approval of Ethereum spot ETFs.
This event led to a surge in Ethereum and its Layer-2 project tokens, including Starknet.
Starknet is a notable Ethereum Layer-2 project.
The bullish sentiment surrounding these projects is believed to be the main reason why the recent large sale did not cause a drop in STRK’s value.
The Weighted Sentiment around Starknet, a metric that measures the positive/negative commentary about a cryptocurrency, surged to 4.293.
This suggests that for every negative mention of STRK, there were four more positive ones.
This optimistic sentiment could potentially lead to a continued rise in the token’s price.
In a highly bullish scenario, STRK’s value might reach $1.80, while a return to a bearish phase could see it drop to $1.06.
However, the bullish prediction might be invalidated due to STRK’s volume decline to $127.90 million, suggesting the recent price increase might not last.
If this forecast is validated, the token’s price could decrease, with a potential drop to $1.06.
Volatility around the cryptocurrency has also increased, indicating potential price fluctuations.
However, it may not be enough to spur a significant price move for STRK.
Market participants should also monitor Ethereum.
If predictions of Ethereum reaching a new high are realized, STRK may follow suit.
However, if Ethereum fails to rally, STRK may also struggle.
