Starknet (STRK) surged nearly 39% in 24 hours as traders responded to renewed market momentum and the network considered a major architectural change. The Ethereum Layer 2 project is exploring a potential transition to an independent Layer 1 blockchain. This move could help Starknet control its security upgrades while pursuing full quantum resistance by 2027.
Starknet confirmed on October 8 that it actively considers becoming a Layer 1 network. StarkWare CEO Eli Ben-Sasson outlined the possibility while summarizing his Token2049 presentation.
The proposal reflects Starknet’s ambition to control its security upgrades without depending entirely on Ethereum or Bitcoin. Moreover, an independent blockchain could give the project greater flexibility when introducing quantum-resistant cryptographic systems.
Currently, Starknet operates as an Ethereum Layer 2 network. It submits cryptographic proofs to Ethereum for verification and publishes data that supports transaction reconstruction.
However, transitioning to Layer 1 would fundamentally change Starknet’s security arrangements. The network would rely on its own consensus mechanism instead of Ethereum’s settlement infrastructure.
STRK traded near $0.0676, gaining 38.94% over 24 hours and 53.57% over seven days. Its market capitalization reached approximately $501 million, supported by a circulating supply of 7.4 billion tokens.
On the four-hour chart, STRK climbed above the $0.06089 resistance and the $0.06441 Fibonacci level. Additionally, the token trades above its 20, 50, 100, and 200 exponential moving averages.
The 20 EMA stands at $0.05571, while the 50 EMA sits at $0.05160. Meanwhile, the 100 EMA reaches $0.04724, and the 200 EMA stands at $0.04167.
This alignment supports the bullish outlook and suggests buyers retain control of the short-term trend. Significantly, the Bollinger Bands %B reading of 1.16 indicates that STRK has moved above its upper band.
However, such an extended move can precede consolidation or profit-taking. Traders will watch $0.07000-0.07141 for a decisive breakout.
A sustained move above that resistance could open the way toward $0.07500 and potentially $0.08000. Conversely, a rejection could push STRK toward $0.06441 or the 0.06089–0.05888 support zone.
Starknet’s derivatives market has also recorded a notable recovery. CoinGlass data showed open interest reaching $85.45 million on October 9, following months of contraction.
Open interest previously declined from above $250 million to approximately $25 million–$35 million during the summer. The latest increase suggests traders have rebuilt leveraged positions alongside the price recovery.
Moreover, rising prices and open interest often indicate fresh participation in an ongoing rally. Nevertheless, leveraged positions can amplify losses when market sentiment reverses.
Starknet’s spot exchange flows also show a significant shift after prolonged selling pressure. Earlier sessions frequently recorded negative netflows, suggesting persistent exchange inflows and possible distribution.
However, October 9 brought a positive netflow of approximately $5.25 million as STRK climbed. This movement suggests increased token deposits on exchanges, which could increase available selling supply.
Key levels remain well-defined following STRK’s sharp rally:
Upside levels: $0.07000–$0.07141 represents the immediate resistance zone. A confirmed breakout could open the way toward $0.07500 and $0.08000.
Downside levels: $0.06441 serves as immediate support, followed by $0.06089–$0.05888 and the 20 EMA at $0.05571.
Resistance ceiling: $0.07141 remains the critical level to break for further bullish momentum. STRK’s position above all four major EMAs supports the bullish structure, although its Bollinger Bands %B reading of 1.16 signals potential short-term overheating.
Starknet’s price prediction hinges on whether buyers can defend $0.06441 and push STRK above the $0.07000–$0.07141 resistance cluster. Rising open interest suggests renewed derivatives activity, while the October 9 positive spot netflow of $5.25 million highlights potential exchange selling pressure.
If buying momentum strengthens and STRK breaks above $0.07141, the token could target $0.07500 and potentially $0.08000. However, failure to hold $0.06441 could expose STRK to $0.06089 and $0.05888.
For now, STRK remains at a pivotal technical level, with its potential Layer 1 transition and quantum-resistance ambitions adding a longer-term narrative. A sustained breakout, stronger spot demand, and continued support from the major EMAs will determine whether the rally extends.
