Starknet at Critical Crossroads: Bullish Breakout or Downtrend Rekindling?

Starknet (STRK) has ignited investor interest as its price surged above a critical falling wedge pattern, sparking speculation about a potential bullish reversal. The token, which has been consolidating between $0.10 and $0.17 for months, recently broke out of a 623-day resistance trend line, a move analysts suggest could signal the start of a new upward trajectory. Technical indicators, including bullish divergences in the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD), have further bolstered optimism among traders CCN analysis.

The breakout has positioned STRK at a pivotal juncture. If the current momentum holds, the token could test the next resistance level at $0.350-a former support zone that now acts as a psychological barrier. This level is critical: a successful breakout would validate a reversal from a prolonged downtrend, while a rejection could trigger renewed bearish pressure, potentially dragging the price into deeper correction zones CCN analysis.

Market analysts have drawn parallels to a classic five-wave downward movement that STRK completed since February 2024. The recent price action suggests either an A-B-C corrective pattern or the initiation of a new five-wave upward sequence. In either scenario, the immediate target of $0.350 remains a focal point. Shorter-term traders are also monitoring wave-four dynamics, with some models indicating a potential fifth-wave rally to the same level if the token clears key support thresholds CCN analysis.

The token's current price near $0.138 has also attracted attention, with some analysts eyeing a 50% gain to $0.205 as a near-term target. This scenario hinges on STRK maintaining its position above the 200-day exponential moving average (EMA) and sustaining volume surges that confirm buyer participation TradingView STRK/USDT ideas. Others argue that the formation of a descending wedge-typically a bullish reversal pattern-lends further credence to a 60-70% upside potential in the coming weeks, assuming follow-through buying materializes TradingView STRK/USDT ideas.

Despite the optimism, risks remain. The price structure is still fragile, with multiple analysts emphasizing the need for confirmation before committing to long positions. A breakdown below $0.11, for instance, could reignite the downtrend toward $0.065, underscoring the importance of tight stop-loss strategies for traders TradingView STRK/USDT ideas.