Starknet Price Drops 60% In Two Days As Founders Dump — What Next for STRK?

Key Takeaways

• The STRK price plummeted more than 50% post-airdrop.
• Airdrop hunters and Nethermind triggered a massive token sell-off.
• Despite the drop, Starknet’s TVL saw a significant increase.

Starknet’s STRK token has experienced a significant price drop of 60% since its launch on February 20, with a steep decline to under $1.90 from a high of $4 following its airdrop to some blockchain users. 

Sles from Ethereum infrastructure firm Nethermind and airdrop hunters, who sold millions of dollars worth of the token, according to blockchain analysts Lookonchain . What is next for the price of STRK now it has stabilized around $1.80? 

STRK Gets Dumped Hard

Blockchain analysts Lookonochain found Nethermind sold 3.41 million STRK tokens worth more than $6.7 million. Not only that, but there is also the potential for continued selling, because they still hold $12 million worth of the token. Additionally, instances of airdrop hunters consolidating wallets to sell large amounts of STRK were identified. 

The airdrop faced scrutiny over eligibility criteria and the unlock schedule for Starknet investors and contributors. This was despite investors and traders cliaming nearly 430 million STRK tokens, or about 92% of the total available, after the launch. 

Despite the price downturn, Starknet’s total value locked (TVL) has seen a parabolic increase in the last 24 hours to February 22, reaching $107 million.

Starknet Price Analysis 

There are two possibilities ahead of STRK’s price since we saw a symmetrical triangle forming. In a bullish scenario, this sideways movement would continue. Further establishing support and resistance and turning into a horizontal range between $1.70 and $2.20 before starting its next uptrend. 

It is be uncertain how long this horizontal range can last. It could last until the bullish sentiment returns. However, according to this theory, STRK could continue its upward trajectory once the support plateau is set. After that happens, it could reach highs above $4. 

But, considering the fundamentals, another 50% drop could take place. At its market release, STRK’s price pumped by 3,400%, shooting up from its starting price of $0.20. This initial price exaggeration, followed by the large token holders cashing out on these gains, could bring the price significantly down. 

In this scenario, the symmetrical triangle is the second part of a larger correction with one more downtrend before completion. Projecting the same length on to the triangle’s apex, we come up with a price target of $0.84. 

Disclaimers

Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.

About the Author

Nikola Lazic

Nikola Lazic is a cryptocurrency analyst and investor working in the industry since 2017. He holds a bachelor's degree in Sociology, which enables him to better understand the psychology behind the crowd´s positioning. Consequently his preferred analytical tool is Elliott Wave Theory in combination with price action analysis. Combining his experience in trading and investing with knowledge in content writing he strives to bring the most accurate and actionable information. Expertise: Cryptocurrencies, Technical analysis, Elliott Wave Theory, On-chain metrics, Research reports.

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