You’re finished with the first area, as this star requires you to collect the Red Coins, which are located in the second area. You will get there via the large cage in the corner of the first area, and there are two ways to get into this cage. The first is via the cannon, but you will need the water level at its highest point to reach the Bob-Omb Buddy (well, the highest from a Crystal Tap). The cannon will be at the top of the slope behind the star’s location from [Shocking Arrow Lifts!]. For aiming the shot, get the stone tube with the 1-Ups in view, but barely along the bottom.
The other method is getting into the cage involves jumping into the painting at the highest possible point. This will put the water level higher than you can normally get it, allow you to pretty much just jump out of the water and grab the ledge of the cage. However you get into the cage, swim all the way down and follow the path until you reach a town area. This place will be flooded, so once you arrive, either go up for some air or go straight down, underneath where you entered to find the Crystal Tape that lowers the water.
So, with that out of the way, it’s time to hunt down the Red Coins. The majority of the coins will be inside the big breakable blocks, so if you can see those, then you will know where the coins are located. From the Crystal Tap, there will be a building with a red roof right next to you. Go to the other side of it and wall jump from the red-roofed building to the roof of the gray one; break the block there for Red Coin #1. Your next goal is the white/beige-colored building that’s taller than the current one.
You will want to get a full momentum Triple Jump here to barely make it onto the roof. If you can’t get it, go to the corner with the cage and wall jump onto the roof; break the block in the middle to get Red Coin #2. That’s it for this side, so head to the opposite side of the area to find two more buildings. They’re closer together, so it’s easier to wall jump to the top of them. Each of the two buildings with have a coin on top of their roofs (Red Coin #3 and Red Coin #4). There is a town square in the middle of the area, which has a wall around it.
You will find two more blocks on top of this wall, so break them to get Red Coin #5 and Red Coin #6. Look at the small building with a steeple now, where you should see another block in front of it, so break it for Red Coin #7. The final coin, Red Coin #8, will be on top of the building with the steeple and the star will spawn in the opening of the same building.