Key points: OKB has surged significantly by 38% recently, rebounding from a low of $88 to a high of $131, followed by a slight pullback to $127. Futures demand reached a 10-month high, but profit-taking selling pressure has impacted the upward momentum.
OKB has recently risen by 38%, rebounding from a low of $88 to a local high of $131.5, and then retracing to $127 at the time of writing.
During this period, the trading volume of this altcoin surged by 284%, reaching $523 million, and its market capitalization also rebounded, returning to $2 billion as of the time of writing, close to $2.7 billion.
Surge in futures demand
Interestingly, research in the derivatives market shows that most of the recent capital has flowed into the futures market.
According to CoinGlass data, the open interest of OKB surged by 120.7%, reaching $4.79 million, the highest level in 10 months.
Additionally, the derivatives trading volume skyrocketed by 318%, reaching $27 million, indicating a significant increase in participation and capital inflow in the futures market.
Meanwhile, the long-short ratio of this altcoin rose to 1.075, indicating an increase in demand for long positions. This usually means that most market participants are betting on the price continuing to rise.
OKB: Profit takers may disrupt the current trend
According to CoinGlass data, the net flow of OKB's spot trading has surged into positive territory, with a net flow of $13.47 million at the time of writing, an increase from $8.1 million the previous day.
Typically, a surge in Netflow indicates that the inflow to exchanges exceeds outflows, which may suggest strong market buying pressure. However, OKB's supply outside of exchanges has significantly decreased, dropping to a three-month low of 245 million, indicating that the asset may face considerable selling pressure, signaling potential downward pressure on prices.
Momentum indicators still show bullish signals
According to AMBCrypto, OKB experienced an increase driven by strong demand in futures positions over the past day.
As a result, the relative strength index of this altcoin soared to 86, entering the overbought range.
At the same time, its directional movement index rose to 69, indicating strong upward momentum.
When these indicators are in this state, it usually means a strong upward momentum dominated by buyers, but it may also be accompanied by significant volatility.
If buying momentum continues, OKB's upward trend is expected to extend, breaking through the resistance level of $148 and setting a new high.
However, if profit takers dominate, it could lead to a correction, with prices falling back to $92.7.
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