Starknet (STRK) holders are showing resilience and holding onto their tokens despite the struggles the Ethereum layer-2 network has faced since its token launch in February. Only 8% of STRK holders are currently in profit, but recent on-chain analysis reveals that holders remain optimistic about the token’s future potential.
Starknet recently announced the successful launch of the Parallel Execution and Block Packing upgrade on Testnet, which aims to reduce gas fees and improve block confirmation time. This upgrade is scheduled to go live on Mainnet on August 28. In response to this announcement, there has been an increase in the number of addresses holding STRK in the last 30 days compared to the last 365 days, indicating that holders believe in the token’s prospects and are not giving in to the losses.
This determination is surprising considering the controversies Starknet has faced, including dissatisfaction with the airdrop distribution and a decline in user engagement. However, recent on-chain data shows an improvement in network activity. The number of new addresses and active addresses has increased, suggesting a positive trend for Starknet and its native token.
Currently trading at $0.39, STRK has shown promising signs on the daily chart. It formed a descending triangle pattern between June 5 and August 3, indicating a potential downtrend. However, the cryptocurrency now appears to be poised for a breakout above this pattern. The Money Flow Index (MFI) reading is indicating oversold conditions, hinting at a possible bullish reversal.
If buying pressure increases, STRK could rally towards the overhead resistance at $0.62 in the short term. The successful completion of the Mainnet upgrade, combined with high demand, may even drive the price to $0.94. However, a loss of confidence among holders could lead to selling pressure and a drop to $0.34.
Despite the challenges, Starknet holders are not throwing in the towel and continue to hold onto their tokens, showing their belief in the project’s potential and resilience in the face of adversity.