Bittime - The crypto world is buzzing with increased activity in Ethereum layer-2 (L2) tokens with the Dencun update. L2's Total Value Locked (TVL) reached a fantastic figure of $38.98 billion on Wednesday, and this increase was also experienced by Arbitrum (ARB) and Starknet (STRK).
Arbitrum (ARB): Potential Explosion in the Gaming Sector
Arbitrum (ARB) will soon unlock nearly 1.1 billion locked ARB tokens, worth approximately $2.32 billion or approximately 76% of the total circulating supply. The unlocking is scheduled for March 16 and is causing discussion among traders. They are weighing the potential impact on ARB prices.
There are both skeptical and optimistic sentiments regarding ARB price movements, considering cases such as Solana's performance post unlocking of its token. Currently, ARB price is between the first support of $1,852 and the first resistance of $2,285, indicating a fragile balance in market sentiment.
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Arbitrum Technical Analysis (ARB)
Source: Bittime
Technically, ARB is near the top end of its recent trading range. The Exponential Moving Averages (EMA) for the 10, 50, and 200 days are at $2.1, $2,073, and $1,986 respectively, indicating a generally bullish trend.
Other indicators such as the Commodity Channel Index (CCI) at 167.51 signal a strong upward price movement, and the MACD level at 0.0106, coupled with Momentum of 0.0816, further confirms the current bullish sentiment.
Meanwhile, the Relative Strength Index (RSI) at 61.58 shows that Arbitrum (ARB) is neither overbought nor oversold, so there is still room for potential price movements in both directions. However, Stochastic %K is at 81.11, hinting at possible overbought conditions and subsequent price correction.
Furthermore, the Average Directional Index (ADX) at 22.94 indicates a lack of a strong trend.
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Arbitrum Price Prediction (ARB)
In a bullish scenario, if the token unlock and subsequent focus on expanding the Arbitrum gaming ecosystem via the Gaming Catalyst Program (GCP) triggers positive market sentiment.
ARB could break $2,285, targeting the next resistance level at $2,501 and potentially $2,935. The unlocked tokens will power the development of new game projects and attract existing projects to Arbitrum (ARB).
Conversely, a price correction could occur if market skepticism dominates. This caused ARB to retreat to lower support levels at $1,634 or even $1,201.
Such a scenario could be influenced by the market reaction to large volumes of tokens entering circulation, reminiscent of the cautionary tale of other token unlocks.
As March 16 approaches, anticipation and uncertainty in the crypto community is becoming more pronounced, setting the stage for significant Arbitrum (ARB) market movement in both directions.
Starknet (STRK): Soaring with Ethereum Dencun
With the Starknet Foundation's announcement of an initiative to reduce fees alongside the Ethereum Dencun hard fork, Starknet (STRK) is gearing up for important developments. The Dencun upgrade is expected to reduce gas costs on L2 rollup by up to 75%, making L2 more attractive due to reduced costs.
The reduction in gas fees and shift to more cost-effective transaction types as part of the Starknet (STRK) 0.13.1 upgrade is in line with the broader market evolution towards efficiency and scalability.
Starknet (STRK) Technical Analysis
Source: Bittime
Technically, STRK is trading in a range between the first support of $1,802 and the first resistance of $2,992.
The token's current dynamics are supported by its 10-day EMA at $2,478, close to its last trading price, and its 50-day and 100-day EMA at $2.36 and $2,192 respectively, indicating a positive trend.
Stochastic %K is in neutral at 53.44, while ADX is at 51.7 indicating increasing trend strength. However, the RSI at 61.58 shows a slight inclination towards the over region.
Starknet (STRK) Price Prediction
In a bullish scenario, Starknet (STRK) could take advantage of the lower cost environment and increased utility of its network following the 0.13.1 upgrade, potentially breaking through $2,992 and eyeing the next resistance levels at $3,561 and $4,751.
Starknet's increased use for gaming, supported by a $125.5 million budget for its Gaming Committee, could further fuel this upward trajectory.
However, on the other hand, in a bearish scenario, concerns over the token's unlocking schedule and broader market uncertainty could cause STRK to retreat to $1,802.
If bearish sentiment dominates, STRK may even test the second support level at $1,181, although strong fundamentals supported by StarkWare's development expertise and positive market response to the Dencun upgrade could buffer against a significant downside.
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Conclusion
Both Arbitrum (ARB) and Starknet (STRK) show significant growth potential in the crypto market, especially in the context of the Ethereum L2 ecosystem. L2 TVL improvements and Dencun Ethereum updates are the main driving factors.
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Monitor price chart movements of Bitcoin (BTC), Ethereum (ETH), Solana (SOL) and other cryptos to find out today's crypto market trends in real-time on Bittime.
Also read:
How to Add Arbitrum Network to MetaMask
Starknet's Latest Update Brings StarkGate 2.0 to Mainnet
Arbitrum (ARB): Its Ecosystem and Latest ARB Airdrop
Can Startknet (STRK) reach IDR 39,128?
DISCLAIMER: This article is informational in nature and is not an offer or invitation to sell or buy any crypto assets. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices can change significantly from time to time and Bittime is not responsible for changes in fluctuations in crypto asset exchange rates.
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