Ethereum’s (ETH) co-founder Vitalik Buterin recently transferred 2.09 million Starknet (STRK) tokens, worth $799,000, to Binance. After holding these tokens for several months, Buterin failed to capitalize on this token’s increase in value, where the initial $1.51 million value dropped to $714,000.
This large deposit has left many wondering where the money will go, and it’s led to speculation over how it will affect the STRK token market and StarkNet.
STRK Price Surges 7% Amid Buying Pressure
Following Buterin’s transaction, Starknet’s market performance increased as investors became interested. During the past day, the STRK token price surged by 7.02%, reaching $0.3775, as investor sentiment returned.
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This also increased STRK’s market cap to $792.57 million (7.03%) and trading volume by 90.20% to $75.89 million. Buying pressure and demand for STRK are clearly present.
The strong liquidity level is also evidenced by the increase in STRK’s Fully Diluted Valuation (FDV) to $3.78 billion and a volume-to-market cap of 9.42%. Starknet has an ample trading volume and market activity, which indicates its high liquidity, as retail and institutional investors have noticed.
Buterin’s decision to offload a significant STRK stake may have caught some attention from the crypto community, with many analysts suggesting that STRK could be facing a concise outlook in the near term.
Technical Indicators Point to STRK Momentum
STRK’s 24-hour price chart shows a bullish trend, with the token up by 9.16% and trading at $0.3790. The Relative Strength Index (RSI) for STRK sits at 46.52, slightly below the neutral 50 mark, indicating that it remains outside overbought conditions.
However, the RSI-based moving average at 52.17 shows residual downward pressure from previous market dynamics, leaving room for additional gains if the RSI trends higher. The Moving Average Convergence Divergence (MACD) indicator reveals minor positive divergence, with the MACD line at -0.0045, close to the signal line at -0.0049.
Although small, this divergence hints at possible upward momentum for STRK if further buying occurs. Should a MACD crossover or larger histogram values materialize, it would signal a more robust bullish trend, supporting continued price gains.
The Chaikin Money Flow (CMF) indicator, currently at 0.10, suggests a positive capital inflow into STRK, indicating sustained buying interest. This positive CMF reading implies that STRK could maintain its bullish trajectory if buying pressure persists, providing potential support for additional price movement.
Funding Rates Show Bullish Shift for Starknet Price
STRK’s liquidation map reveals high activity around its current price of $0.381, particularly in leveraged trading zones.
Notably, cumulative long liquidations diminish as the price increases, especially between the $0.345 to $0.374 range, while short liquidations accumulate above $0.385.
This leverage concentration suggests traders are positioning themselves for potential volatility, with heightened liquidation risks if STRK’s price shifts sharply.
Open Interest (OI)-Weighted Funding Rate data indicates fluctuating funding rates in recent months, reflecting changing sentiment toward Starknet.
Negative funding rates in July and August highlighted a period where short positions dominated, while more recent positive rates since mid-September show a tilt toward long positions.
The steady increase in favorable funding rates reflects renewed bullish sentiment, aligning with STRK’s gradual price recovery and positive trading momentum.
As the market responds to Buterin’s large deposit on Binance, the recent surge in STRK’s trading volume and bullish sentiment points to potential upward movement.
However, with substantial liquidations in higher leverage bands, the token remains exposed to volatility, with rapid price movements potentially triggering significant liquidation events.
