When Will Starknet Bounce Back?
![BITmarkets | When Will Starknet Bounce Back?](https://wcms-cdn.bitmarkets.com/4020/!!strk.jpg)
Launched on February 20th of 2024, Starknet's STRK token witnessed a price surge which propelled it to all-time highs of $3.66 during the memecoin frenzy in March.
Following its ascendance, STRK dwindled over the coming weeks and the cryptocurrency has recently experienced a price decline, which may present more favorable buying opportunities for investors.
However, it's essential to approach the market with objectivity. If you're considering the best time to buy, this analysis will guide you.
Key focus areas
STRKUSD - 4 Hour Time Frame
The current market structure is bearish, characterized by the formation of Lower Highs and Lower Lows. Alongside these structures, it's crucial to monitor price movements within resistance zones, indicated by Fair Value Gaps (FVG).
Presently, prices are rebounding off the lowest FVG (indicated on the chart as the blue zone), which confirms the persistence of the bearish trend.
Key purchase points
Investors and traders looking to purchase STRK can do so in two advisable ways:
Risk entry model: This approach involves identifying potential support zones that were previously resistance zones. In our scenario, this requires waiting for the price to close above the last FVG.
Such a close would establish strong support zones (Inversion FVG), where buy orders could be placed. The associated Stop Loss should be set below the local Low, with a Take Profit at the top of the daily bearish structure (indicated on the chart by the top blue level).
Safe entry model: This model entails waiting for a break above the Internal Lower High (indicated on the chart by the upper green level).
Traders should wait for a corrective move to the Fibonacci 0.5 level before placing a buy order, maintaining the same Stop Loss and Take Profit parameters.
By adhering to these models, traders can make more informed decisions, potentially reducing risk and enhancing the likelihood of profitable trades in the Starknet market.
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