STRK Bearish Analysis Jan 21

Starknet’s native token STRK is entering a critical support test while stuck around 0.08 dollars, with the downtrend on the daily chart drawing investors’ attention. Although RSI at 36.60 is approaching oversold signals, Bitcoin’s parallel decline is creating additional pressure on altcoins – if this level breaks, deeper losses could come into play.

Market Outlook and Current Situation

STRK is trading at the 0.08 dollar level with a 5.62% decline over the last 24 hours, dominated by a clear downtrend on the daily timeframe. 24-hour trading volume has reached 42.17 million dollars, with the price range quite narrow – it appears stuck at both below and above 0.08 dollars. This situation indicates that the market is consolidating amid uncertainty. In recent weeks, STRK has suffered from the general weakness in the altcoin market; the Starknet ecosystem, focused on Ethereum Layer-2 solutions, has remained under macro pressures despite positive factors like development news and TVL growth.

The overall crypto market has lost risk appetite following Bitcoin’s decline around 88 thousand dollars. STRK’s market cap has followed a volatile path in recent months, while on-chain metrics – such as active addresses and transaction volume – are still not showing recovery signals. In this context, for investors following STRK Spot Analysis, a cautious approach is required for short-term positions. As the downtrend continues, the decrease in volume reinforces momentum loss, requiring additional catalysts for a potential recovery.

Looking at multi-timeframe (MTF) confluence, a total of 9 strong levels are identified across 1D, 3D, and 1W charts: 1 support/1 resistance on 1D, 1 support/2 resistance on 3D, and 2 support/4 resistance on 1W. This distribution shows that resistances are more dominant in the medium term and could create serious obstacles for STRK’s upward movement.

Technical Analysis: Key Levels to Watch

Support Zones

The most critical support level is at 0.0772 dollars (score: 62/100), positioned near the recent lows on the daily chart. This level is a confluence point where previous swing lows and the 0.618 Fibonacci retracement intersect. If the price dips here, there’s a chance of holding with increased volume; however, a breakdown could lead to the next bearish target at 0.0201 dollars (score: 22). Additional supports on the weekly timeframe cluster around the 0.07 band, which could signal a potential bottom formation.

The strength of support zones is reinforced by signals from 1D and 1W in MTF analysis. Investors can develop leveraged strategies by reviewing STRK Futures Analysis for long positions at these levels, but risk management must be prioritized. According to historical data, STRK has experienced 10-15% pullbacks during similar support tests, increasing the criticality of the current situation.

Resistance Barriers

On the upside, the strongest resistance stands out at 0.2016 dollars (score: 64/100), supported by confluence from 3D and 1W timeframes along with the Supertrend indicator’s short-term resistance at 0.09 dollars. The 0.09 dollar barrier must be overcome before closing above EMA20; otherwise, the downtrend will continue. These resistances are points where selling pressure intensifies, and in a breakout scenario, the first bullish target could be 0.1071 dollars (score: 10).

The abundance of resistances (a total of 7 in MTF) reflects the difficulty of upward movement. Previous rallies required high volume and positive news flow to break these levels; in the current low-volume environment, short opportunities are prominent.

Momentum Indicators and Trend Strength

RSI on the daily is at 36.60, approaching the oversold region (below 30) while we look for divergence signals. Although this carries short-term recovery potential, it shows that trend strength remains weak. The MACD histogram is neutral at the zero line; with a signal line crossover pending, bearish momentum still dominates. STRK trading below EMA20 (0.08 dollars) confirms the short-term bearish structure, and the Supertrend indicator is also signaling downside.

In terms of trend strength, the ADX indicator (around 25) points to medium-level momentum – neither an extremely strong decline nor recovery. As Bollinger Bands contract, volatility compression is occurring; the price near the lower band carries breakout potential in either direction. However, overall, momentum indicators support the downtrend, and a bullish reversal requires RSI to rise above 50.

Risk Assessment and Trading Outlook

In risk/reward ratio (R/R) calculations, the bearish target at 0.0201 dollars (approximately 75% decline) draws an unbalanced picture against the bullish 0.1071 (34% rise). Short-term outlook is bearish; if 0.0772 support breaks, it could cascade to lower levels. In a positive scenario, breaking above 0.09 resistance could bring momentum increase, but volume confirmation is essential. With high volatility, stop-losses should be placed below supports.

In the medium term, development updates in the Starknet ecosystem (e.g., new bridge integrations) could act as catalysts, but macro risks (Fed rates, regulation) prevail. A balanced approach suggests hedging strategies covering both scenarios – opportunities exist for high risk tolerance investors, but conservatives should stay on the sidelines.

Bitcoin Correlation

Altcoins like STRK show high correlation with Bitcoin’s price action; BTC’s current level at 88,409 dollars and 4.63% decline are increasing pressure on altcoins. With BTC Supertrend giving a bearish signal, supports at 88,259 / 86,637 / 85,129 dollars are critical – breaks below these could trigger an additional 10-20% drop in STRK. Conversely, if BTC resistances at 88,531 / 90,873 / 92,803 dollars are surpassed, an altcoin rally could carry STRK to 0.10 dollars.

As BTC dominance rises, altcoins are disadvantaged; with STRK’s beta coefficient around 1.5, the BTC downtrend is directly reflected. Investors should monitor BTC key levels – for example, a break below 86,637 accelerates a 0.0772 test for STRK.