Starknet up 15%: Did STRK’s 1.5B transfer and Shinobi upgrade fuel this?

In the past 24 hours, a couple of altcoins outperformed Bitcoin, including Starknet [$STRK], which recorded 15% in gains. $STRK’s price was extending its weekly rally of about 25%, with the volume jumping by 110%.

A shift in market sentiment on Starknet following the Shinobi upgrade has driven the rally. The activities that have followed this upgrade fueled high trading activity for the altcoin.

How the Shinobi upgrade is driving $STRK price

As per Starknet’s post on X, the Shinobi upgrade went live on mainnet, introducing the privacy infrastructure natively on the network.

Traders could now prove transactions on the chain without exposing the full balance sheet or activity behind it. The involved tokens were STRK20 and strkBTC, which created ERC-20 support.

The team announced that they would unveil the capabilities of STRK20 and strkBTC in the coming weeks. These developments probably explained why the team moved a massive amount of $STRK tokens to a multisig wallet.

As per Arkham, the team first moved 100 $STRK worth $3.27 last week, likely as a test transaction. Following the Shinobi upgrade going mainnet, another 1.5 billion $STRK tokens valued at $55.13 million were transferred.

Source: Arkham

The movement backed Starknet’s plan for the project to integrate Bitcoin transactions, privacy, and ERC-20 support. Moreover, it could be a long-term accumulation as the team eyes a surge in activity in the network.

But during the past five months, its price action hasn’t been the best. Could these network developments serve as a catalyst for Starknet’s price action?

Understanding Starknet’s 30-day price action

On the chart, Starknet has been consolidating between $0.0320 and $0.0358 since late March, with price action breaking out in mid-April. $STRK pulled back after the breakout and bounced back from the 0.618 Fibonacci Retracement level.

The Cumulative Volume Delta (CVD) showed bulls were dominating with the difference between buying and selling at 11.27 million $STRK tokens.

However, the CVD had declined from a day’s peak of 26 million $STRK tokens, indicating some traders had started to take profits.

The RSI Divergence signal remained bullish as the price continued with its second leg up. However, the second leg up is seeing a rejection at March highs above the $0.04 zone.

Source: $STRK/USDT on TradingView

As some traders take profits and speculation cools off, the altcoin may correct to the same Fibonacci levels as the initial move. This means that $STRK’s price could hit $0.038 or lower before breaking above $0.0434.

That would be about a 50%+ price correction.

Final Summary

Starknet rallies 15% amid Shinobi upgrade and massive token movement.

$STRK’s price faces rejection at $0.040, which could spark a 50% correction before continuation.