Starknet (STRK), a Layer-2 scaling solution on Ethereum (ETH), is currently experiencing a bearish trend, which has prompted many Ethereum (ETH) investors to look elsewhere for potential gains. One project that has caught their eye is Mpeppe (MPEPE), a new casino coin that promises significant returns, attracting attention amidst the downturn in Starknet.
Starknet’s (STRK) Recent Performance
Starknet (STRK) saw a 3% drop recently, despite a broader upswing in the cryptocurrency market. Bitcoin surged past $57,000, and many altcoins followed suit, recording gains across the board. Yet, Starknet (STRK) struggled, primarily due to an over-the-counter (OTC) sale involving Three Arrows Capital (3AC), the now-defunct crypto hedge fund.
A wallet associated with 3AC transferred over 2 million STRK tokens (worth about $856,000 USD) to Wintermute for an OTC sale, causing market participants to speculate on the token’s future. Such large transfers from insolvent companies often signal impending asset liquidation, which can drive prices down. As a result, the bearish sentiment surrounding Starknet (STRK) has only intensified, with the token now hovering at around $0.4137 USD.
This bearish movement comes as a surprise, especially with the wider crypto market seeing gains. While Bitcoin recorded a 3.55% gain over 24 hours, Starknet (STRK)’s failure to ride the wave left it at a critical juncture. The liquidations associated with 3AC are expected to continue influencing the market, and further selling pressure could be on the horizon for STRK.
What’s Next for Starknet?
Analysts are concerned that Starknet (STRK) may continue its downward trajectory in the short term, especially if more 3AC-associated wallets begin offloading large amounts of tokens. With the 200-day exponential moving average (EMA) suggesting a further decline, Starknet (STRK)’s price recovery seems unlikely in the immediate future.
For now, Starknet (STRK) continues to trade below its crucial resistance levels, and while the broader market is experiencing a bullish sentiment, Starknet (STRK)’s troubles are tied directly to its association with 3AC. Until these liquidation concerns are resolved, Starknet (STRK) is expected to face headwinds.
Ethereum (ETH) Investors Turn to Mpeppe (MPEPE) for Gains
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