**STRK Surges 19% Amid Bearish Market: What’s Fueling the Rebound and What Comes Next?**
Starknet (STRK), a layer-2 cryptocurrency, has stunned the market with a sharp 19% rebound—even as the overall market remains bearish and suffered a recent liquidation event totaling $669 million in investor losses.
### Decisive Investor Inflows Spark the Rebound
At the heart of STRK’s surge is a strong wave of investor activity. Despite the market’s weakness, investors poured significant liquidity into STRK. Over just 48 hours, $3.8 million was pumped into the asset, demonstrating bold confidence amid market uncertainty.
Weekly figures paint an even clearer picture: spot investors accumulated $6.89 million in STRK, reversing the previous week’s net sale of $2.8 million—the first weekly outflow since Q1. Beyond the spot market, derivatives traders also showed conviction, with new contract positions collectively valued at $39.8 million added in the past day.
A closer look at market data reveals that most derivative inflows come from long contracts, as buying volume overtakes selling. Indicators such as the Weighted Funding Rate and rising Open Interest confirm this bullish momentum.
### Key Resistance May Challenge STRK’s Rally
While the bullish outlook looks promising, STRK’s upward trajectory may be tested at the crucial $0.177 resistance zone. Historically, this level has triggered sharp declines for STRK: an 84% drop on October 6th and a 37% decline on November 10th serve as cautionary tales. Should history repeat, STRK could face a drop of up to 46%, mirroring previous average losses.
### Mixed Technical Signals: Rally or Reversal?
There’s still hope for bulls, however. Technical analysis reveals signs that STRK could defy the usual sell-offs at this resistance. Notably, STRK’s chart pattern resembles an inverted triangle—a formation often preceding broader market rallies.
Momentum indicators provide additional optimism:
– **MACD**: At press time, both the blue (MACD) and signal lines are trending upward, suggesting momentum remains with buyers.
– **Money Flow Index (MFI)**: The MFI shows continued strength in the positive region, indicating ongoing capital inflows and further supporting the bullish case.
### Conclusion: Cautious Optimism
In summary, STRK’s recent rally is driven by robust spot and derivative market inflows, signaling investor confidence even in challenging conditions. Still, the looming $0.177 resistance poses a significant hurdle that could trigger historical levels of price reversal.
For now, technical indicators remain bullish, providing hope that STRK could continue its upward trend. As always, investors should monitor resistance levels and market signals closely before making decisions.
https://bitcoinethereumnews.com/tech/starknet-rebounds-19-but-one-hurdle-could-stop-strks-rally/