OKB reached a monthly high as sharks returned to the market.
OKX burned 42.4 million Tokens worth 2.26 billion USD, causing a supply shock in the cryptocurrency market.
OKB has rebounded strongly after the decline, and the main price rebound factor.
After dropping to 46 USD, OKB successfully defended the support level of 49 USD and rebounded notably. Over the past day, this altcoin has risen from a local low of 47 USD to a monthly high of 54.7 USD.
After successfully conquering these levels, the coin has slightly adjusted to 53.93 USD at the time of writing. This change corresponds to an increase of 8.03% over the 24-hour timeframe.
According to TinTucBitcoin's analysis, there are two key factors that led to the sudden price increase. Below is a detailed analysis.
Why is OKB rising sharply?
The recent price increase of OKB has two main reasons. First, OKX has completed its 28th Token burn, removing 42.4 million OKB worth 2.26 billion USD from circulation.
This corresponds to a 20% reduction in total circulating supply, which is currently at 300 million Tokens. This Token burning action is part of OKX's strategy to control supply and increase the scarcity of the coin, thereby supporting price growth.
Token burning activities cause a supply shock, which in turn drives the altcoin's price to surge. In the cryptocurrency market, reducing supply while demand remains stable or increases will push prices up.
The role of large sharks in this price increase
Secondly, OKB sharks have returned to the market strongly. The previous day, the shark capital flow hit 0, indicating the absence of the shark group in the market.
Source: IntoTheBlock
However, in recent days, the capital flow of sharks has returned, accumulating 86.13 million Tokens. When the shark group starts accumulating again after a period of withdrawing from the market, it signals new confidence and affirmation of the potential of this coin.
These two consecutive factors create positive momentum, helping OKB maintain its growth status and opening up opportunities for many new price increases.
Will this altcoin maintain its new upward momentum?
According to TinTucBitcoin's analysis, OKB is experiencing positive growth momentum, clearly forming amid increasing buying pressure. In particular, the Market Flow Balance has dropped into the negative zone over the past two days.
Source: Santiment
The negative Market Flow Balance indicates a significant outflow from the exchange, accompanied by an active accumulation process. Meanwhile, OKB's RSI has surpassed the 30 level to reach 57, indicating buyers' control over the market. Additionally, a positive crossover has appeared on this altcoin's Stochastic indicator.
Source: Trading View
The Stochastic crossover indicates that investors have returned, reinforcing the bullish trend of OKB. The price continues to rise if the buying groups maintain their positions, completely replacing the selling group.
In the current context, market conditions indicate that OKB has the potential to maintain its growth momentum and aim for resistance at 56 USD. However, if the sellers return to take profits after this increase, the coin may revert to the 49 USD level before making new developments.
Source: https://tintucbitcoin.com/okb-tang-gia-sau-dot-token-vuot-56-usd/
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