The long/short accounts ratio fell dramatically in the past two days to show profit-taking activity.
- The Starknet price prediction promised a move to $0.51 and $0.62. Profit-taking activity increased as STRK approached the $0.5 resistance.
Starknet [STRK] has gained 29.74% in the past three days and saw a minor pullback of 2.5% in the two hours before the time of writing. The technical indicators showed a strong bullish outlook.
Since April, the token has been in a downtrend. From the 8th of April to the 23rd of September, the coin had shed 81.8% of its value.
The recent gains are encouraging, but it is also possible that long-term holders want to exit at break-even.
Starknet price prediction
Source: STRK/USDT on TradingView
On the bright side, the long-term downtrend was followed by a range formation from August to nearly the end of September.
This three-month consolidation and breakout offered an ideal accumulation opportunity, and the breakout was on high volume.
The OBV easily cleared the local highs and signaled high demand over the past two weeks. The daily RSI also underlined the strong momentum.
The former support level at $0.51 and the resistance in July at $0.62 are the next targets for STRK. Investors who entered after August can consider taking profits, but earlier holders might have other ideas.
Do they choose to hold on to a coin that needs to rally 300%-400% to reach the levels it was at in April?
Or do they try to get out of STRK as close to breaking even as possible and try their luck with another coin they deem has more promise?
Only investors who have done their research and maintained conviction in the token would have held. These are the ones that would be willing to wait for $2+ prices, but they are likely in the minority.
Futures data shows price volatility ahead
Source: Hyblock
There was a high positive cumulative liq levels delta that indicated long positions could get squeezed. A price drop to $0.47 and $0.44 in the coming 24–48 hours was possible.
Source: Coinalyze
Such a dip could offer a buying opportunity, provided the spot CVD does not fall too steeply. The Open Interest continued to show a bullish speculative market.
Realistic or not, here’s STRK’s market cap in BTC’s terms
Yet, the long/short accounts ratio fell dramatically in the past two days. It was still in favor of the bulls, but the steep fall indicated that many long positions were closed as the price rallied.
The market might need time and a minor retracement before it can advance higher.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
Take a Survey: Chance to Win $500 USDT
Next: Bitcoin still has room to grow, THIS shows
Source
