Starknet (STRK), a Layer-2 scaling solution on Ethereum, is beginning to show signs of recovery after recent market turbulence. The asset has faced downward pressure over the last several weeks, but its latest price movements, coupled with improving technical indicators and notable adoption news, are offering a glimmer of hope for bullish traders and long-term investors.

This week, STRK gained more than 10%, briefly nearing resistance levels after the introduction of its much-anticipated staking program. Staking often signals long-term project confidence, encouraging token holders to lock their assets in return for yield, thereby reducing circulating supply and alleviating some short-term sell pressure. This move came at a crucial time for Starknet, which just released 127.6 million STRK tokens—valued at roughly $15.7 million—into circulation as part of a scheduled token unlock.

Token unlocks can often trigger price declines due to increased supply entering the market. However, Starknet’s focus on expanding utility and increasing its relevance in the real world may be helping it weather the storm. One of the most promising developments was the declared that STRK can now be used for payments in over 15,000 stores worldwide, showcasing a strategic push toward real-world use cases that go beyond speculative trading.

On the technical side, indicators are beginning to reflect a potential shift in momentum, albeit cautiously. The Relative Strength Index (RSI) for STRK currently stands at 42.92, a modest recovery from yesterday’s low of 37.29. RSI values below 50 suggest that bearish sentiment still dominates, but the upward movement indicates that the selling momentum is losing steam. Continued improvement could move RSI into a more bullish zone and potentially attract renewed interest from traders.

In addition to RSI, the Chaikin Money Flow (CMF)—a volume-weighted indicator that shows buying or selling pressure—has also improved. From a deeply negative reading of -0.32, it has now climbed to -0.10. While still in negative territory, this move suggests that outflows are slowing and buyers are gradually returning. If the CMF continues on this trajectory and crosses above zero, it would signal a shift from distribution to accumulation, often considered a precursor to price recovery.

Despite these positive signals, caution is still warranted. Starknet’s Exponential Moving Averages (EMAs) continue to display a bearish setup. The short-term EMAs remain below the long-term averages, which generally indicates a prevailing downtrend. For traders, this suggests that STRK has not yet fully reversed course and remains vulnerable to broader market fluctuations or renewed sell pressure.

Looking ahead, STRK needs to hold support near $0.109 to avoid deeper declines. This level has served as a crucial floor in previous trading sessions, and a breakdown could send prices lower. Conversely, if momentum continues to build and STRK manages to break through immediate resistance levels at $0.137 and $0.142, it could pave the way toward a more significant recovery, potentially targeting the $0.158 level.

In summary, Starknet is showing promising early signs of stabilization. The token unlock posed a clear risk, but improved technical indicators and increased utility through real-world payments have provided some balance. The current price action suggests that while the asset is not yet in a confirmed uptrend, the worst may be over—at least for now.

As Layer-2 solutions become increasingly critical to Ethereum’s scalability, Starknet’s progress in both development and adoption could help it stand out in a crowded field. For investors watching closely, the next few weeks will be crucial in determining whether STRK can maintain its upward momentum or if further consolidation lies ahead.