While the wider market signaled a recovery from the recent sell-offs, Starknet wasn’t so lucky as it struggled under massive bearish pressure. In fact, since facing rejection at $0.12, the altcoin has closed at lower lows on the charts.
Previously, the altcoin rallied amid speculation as investors turned bullish on its L1 plans for 2027. However, that speculation has since faded.
Over the last 24 hours, for example, STRK breached the $0.07-support, hitting a low of $0.069. At the time of writing, Starknet was trading at around $0.0707, down 15% on the daily charts.
The price drop was accompanied by a 60% decline in volume, indicating a sharp market slowdown as investors stayed away.
Starknet long liquidations add to selling pressure
This extended decline on Starknet’s charts has seen bulls flushed out, with over $2 million in long positions liquidated.
The long liquidations increased selling pressure, further weakening the market. With liquidation risk remaining high, traders have significantly reduced their exposure too.
In fact, according to CoinGlass, over the last 24 hours, the altcoin has recorded $249 million in Futures outflows.
The selling pressure was even more intense over shorter timeframes. Over eight hours, Futures Netflow dropped to -$3.22 million as $41.98 million flowed out of the Futures market.
Typically, when sellers dominate the derivatives market, selling pressure can increase, resulting in further losses.
Protocol outflows exceed $59 million
In addition to sustained market exits, significant capital has flowed out of the protocol too.
On 16th October, Protocol USD Inflows fell into negative territory, hitting -$59 million. A negative value alluded to higher outflows as users withdrew funds.
Often, higher protocol outflows could mean a fall in user participation and, in many cases, greater selling pressure too.
What’s next for STRK?
As it stands, STRK is under pressure from two sides. Derivatives traders have lost confidence in the market, while the protocol is also seeing capital outflows.
As a result, southbound momentum has strengthened significantly. A look at the Relative Strength Index (RSI) seemed to support this bearish outlook too. Since forming a bearish crossover three days ago, the RSI has remained on a downward trajectory, falling to 53.
A falling RSI is indicative of weakening momentum. A drop below 50 would provide further evidence of increasing bearish pressure.
Therefore, if the current selling pressure continues, Starknet is likely to drop to $0.062, with October rally’s starting point at $0.055 acting as critical support.
However, a daily close above $0.075 would invalidate this bearish setup and open a path to reclaim $0.08 in the short term.
Final summary
- Starknet [STRK] fell by 15%, breaching its $0.07 support, to a low of $0.069.
- Starknet saw $2 million in long liquidations, while protocol outflows rose to -$59 million.
