OKB Price Correction? Key Levels to Watch After 38% Surge
OKB's Rally: Correction on the Horizon?
OKB recently experienced a significant rally, jumping 38% from a low of $88 to a peak of $131 before settling around $127. This surge was fueled by a spike in futures trading, but increasing profit-taking could trigger a correction.
The altcoin's trading volume soared 284% to $523 million, driving its market capitalization from $2 billion to $2.7 billion. This indicates substantial capital inflow and heightened on-chain activity.
Futures Market Fuels the Surge
A significant portion of the new capital appears to have flowed into the futures market. Open interest for OKB futures skyrocketed 120.7% to a 10-month high of $4.79 million, according to CoinGlass.
Derivatives volume also saw a massive increase, jumping 318% to $27 million, reflecting increased participation and capital flowing into futures contracts.
Profit-Taking Threatens Uptrend
Despite the bullish momentum, there are signs that investors are cashing out after the recent price rebound.
CoinGlass data shows OKB's Spot Netflow turned positive, reaching $13.47 million, up from $8.1 million the previous day. This indicates higher inflows to exchanges compared to outflows.
Consequently, OKB's supply outside of exchanges has decreased to a 3-month low of 245 million, suggesting increased selling pressure.
Key Indicators Still Bullish
Despite the potential for a correction, momentum indicators suggest underlying strength. OKB's Relative Strength Index (RSI) has reached 86, entering overbought territory. The Directional Movement Index (DMI) also shows strong upward momentum, with the positive index at 69.
These indicators signal strong buying pressure, but also warn of potential volatility.
Potential Price Scenarios
- Bullish Scenario: If buyer momentum continues, OKB could break through the $148 resistance level and target new highs.
- Bearish Scenario: If profit-taking intensifies, OKB could experience a correction, potentially falling to $92.7.