Despite the broader market correction and increased volatility, the Starknet token, STRK, has increased by 12.32% this week. STRK is a layer-2 blockchain built on Ethereum and uses a zero-knowledge roll-up technique.
With an 11% jump on Wednesday, it creates a bullish engulfing candle to rank in the top gainers list as the broader market spiked momentarily.
Source: Tradingview
With a double bottom pattern arising in the daily chart, the bull cycle chances are increasing as the neckline stands at $0.42. Based on the daily chart, the STRK price can surpass the 50-day EMA with a reversal rally and breakout momentum.
As per the Fibonacci levels, the uptrend in the STRK price can aim for the 23.60% and 38.20% levels at $0.553 and $0.747, respectively. On the flip side, the $0.34 support level stands strong.
Vitalik Shifts ~$860K STRK Tokens
Amid the increasing chances of a breakout run, Vitalik Buterin, the founder of Ethereum, has transferred 2.1 million STRK tokens to a new wallet.
The total number of STRK tokens is worth around $860K. Vitalik remains a seed investor in Stockinet and has received 2.1 million STRK tokens during the two unlocks.
Previously, in May 2024, Buterin received 845,205 STRK tokens as they were unlocked from the Locked Token Grant contract, which at that moment accounted for 1.07 million.
Ethereum Foundation Continues To Diversify
Amid the STRK backdrop, the Ethereum Foundation maintains a selling spree of Ethereum tokens over the decentralized exchanges. Since the start of 2024, the Ethereum Foundation has sold almost 2,616 Ethereum tokens in exchange for 7.64 million DAI at an average price of $2,922.
In recent events, in the past three hours, the Ethereum Foundation has again sold 100 Ethereum tokens for 241,000 DAI tokens. The Ethereum token sale in exchange for DAI seems part of a broader financial strategy to diversify its holding.
With the Ethereum Foundation diversifying and Vitalik holding STRK, speculations around the Foundation’s readiness to buy STRK are increasing. Further, the upcoming first mainnet vote of Starknet for STRK holders staking aimed for October maintains an underlying bullish tone.
