Starknet (STRK) climbed market cap levels as it jumped in price.
Last week saw a significant increase in the price of Layer 2 (L2) tokens. Leading assets like Optimism ( OP ) and Arbitrum ( ARB ) saw double-digit price gains. Still, we're seeing a significant uptick in the press release, with their values up 29% and 16% in the last seven days.
The rally extended to Starknet (STRK), another L2 token, whose price rose by 10% during the same period.
Starknet is now among the top 100 coins.
Strong net (STRK) trading activity and price increase during the review period led to a rise in the market capitalization.
As of this writing, the altcoin's market capitalization is $905 million, which represents the highest in the past seven days. It is currently the 71st cryptocurrency with the highest market capitalization.
Asset market capitalization is measured by the total value of tokens/coins in circulation. When it increases, the total value of these signs increases. This is a positive sign that highlights the price rally and increased demand for assets.
Last week's increase in STRK prices led to a surge in activity in the market. This can be gathered from the increasing future open demand. At $51 million at the time of writing, open demand for the token's futures has increased by 9% over the past week.
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An asset's futures open interest refers to the total number of outstanding futures contracts. As it increases, it means that many traders are entering new positions.
However, many derivatives traders are not convinced that STRK's current rally is sustainable. This led them to demand more short positions. This is based on the reading from the token funding rate, which is mostly negative during the review period.
Cash-out prices are a technique used in perpetual futures contracts to ensure that the contract price of an asset is close to the spot price. When they are negative, it means that more traders are buying the asset than buying and waiting for the rally.
STRK Price Prediction: The rally will continue
As reviewed on the one-day chart, some of STRK's leading technical indicators hint at the possibility of an extended rally. For example, Chaikin's Cash Flow (CMF) is updated in value.
This indicator measures the flow of money into and out of the property. When there is more, it means that liquidity is being offered to the market. When asset prices and CMFs move higher, it is a positive sign that the price rally is supported by demand for the asset.
Also, STRK's Accumulation/Distribution (A/D) line is progressing at press time. This indicator measures the flow of cash in and out of an asset.
Like STRK, when both the price and the A/D line increase, it confirms a strong trend, which means that the buying pressure is strong.
If this buying pressure continues, the price of the token may rise to $0.63.
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However, if profit-taking activity begins, STRK price may drop to the $0.5 price level.
Disclaimer
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