OKB’s correction ahead? A dip to $92.7 is possible if THIS happens
Key Takeaways
OKB soared 38%, bouncing off its current backside of $88 to a excessive of $131 earlier than barely retracing to $127. Demand for Futures surged to a 10-month excessive, however revenue takers threatened the uptrend.
OKB [OKB] rallied 38%, bouncing off its current low of $88, and broke out to a neighborhood excessive of $131.5 earlier than retracing to $127 at press time.
Over this era, the altcoin’s quantity rose 284% to $523 million, whereas its market cap bounced again, reclaiming $2 billion to $2.7 billion at press time.
Such a spike in quantity and market cap displays regular capital influx and rising on-chain exercise. However what’s driving this uptick?
Demand for Futures skyrockets
Upon inspecting the derivatives market, apparently, plainly a lot of the not too long ago deployed capital flowed into Futures.
In response to CoinGlass, OKB’s Open Curiosity surged 120.7% to a 10-month excessive of $4.79 million.
On the identical time, Derivatives Quantity jumped 318% to $27 million, reflecting elevated participation and capital inflow in Futures.
Supply: CoinGlass
In the meantime, the altcoin’s Lengthy/Brief Ratio jumped to 1.075, reflecting elevated demand for lengthy positions. This usually signifies that the majority individuals rushed into the market to guess on rising costs.
OKB: Revenue takers could spoil the get together
Notably, as costs rebounded from the current correction, holders and traders jumped into the market and cashed out.
Supply: CoinGlass
In response to CoinGlass, the altcoin’s Spot Netflow jumped into the constructive zone. As of this writing, the Netflow was $13.47 million, a slight rise from $8.1 million the day before today.
Usually, when Netflow spikes, it means that exchanges are recording larger inflows in comparison with outflows.
Because of this, OKB’s provide outdoors of exchanges plummeted considerably, reaching a 3-month low of 245 million. Such a decline implies that the asset is going through sturdy promoting strain, usually a prelude to decrease costs.
Supply: Santiment
Momentum indicators are nonetheless bullish
In response to AMBCrypto, OKB has rallied amid sturdy demand, particularly for Futures positions, over the previous day.
For that purpose, the altcoin’s Relative Power Index surged to 86, reaching the overbought zone.
On the identical time, its constructive index of Directional Motion Index (DMI) surged to 69, reflecting sturdy upward momentum.
Supply: TradingView
Usually, when these indicators are in such a fashion, it alerts sturdy upward momentum largely pushed by patrons however warns of volatility.
Subsequently, if patrons’ momentum holds, OKB’s uptrend will proceed, reclaiming $148 resistance and focusing on a brand new excessive.
Conversely, if revenue takers overpower the market, one other correction will observe with a dip to $92.7.
