Key Takeaways
OKB soared 38%, bouncing off its recent bottom of $88 to a high of $131 before slightly retracing to $127. Demand for Futures surged to a 10-month high, but profit takers threatened the uptrend.
OKB [OKB] rallied 38%, bouncing off its recent low of $88, and broke out to a local high of $131.5 before retracing to $127 at press time.
Over this period, the altcoin’s volume rose 284% to $523 million, while its market cap bounced back, reclaiming $2 billion to $2.7 billion at press time.
Such a spike in volume and market cap reflects steady capital inflow and growing on-chain activity. But what’s driving this uptick?
Demand for Futures skyrockets
Upon examining the derivatives market, interestingly, it seems that most of the recently deployed capital flowed into Futures.
According to CoinGlass, OKB’s Open Interest surged 120.7% to a 10-month high of $4.79 million.
At the same time, Derivatives Volume jumped 318% to $27 million, reflecting increased participation and capital influx in Futures.
Source: CoinGlass
Meanwhile, the altcoin’s Long/Short Ratio jumped to 1.075, reflecting increased demand for long positions. This often indicates that most participants rushed into the market to bet on rising prices.
OKB: Profit takers may spoil the party
Notably, as prices rebounded from the recent correction, holders and investors jumped into the market and cashed out.
Source: CoinGlass
According to CoinGlass, the altcoin’s Spot Netflow jumped into the positive zone. As of this writing, the Netflow was $13.47 million, a slight rise from $8.1 million the previous day.
Typically, when Netflow spikes, it suggests that exchanges are recording higher inflows compared to outflows.
As a result, OKB’s supply outside of exchanges plummeted significantly, reaching a 3-month low of 245 million. Such a decline implies that the asset is facing strong selling pressure, often a prelude to lower prices.
Source: Santiment
Momentum indicators are still bullish
According to AMBCrypto, OKB has rallied amid strong demand, especially for Futures positions, over the past day.
For that reason, the altcoin’s Relative Strength Index surged to 86, reaching the overbought zone.
At the same time, its positive index of Directional Movement Index (DMI) surged to 69, reflecting strong upward momentum.
Source: TradingView
Often, when these indicators are in such a manner, it signals strong upward momentum largely driven by buyers but warns of volatility.
Therefore, if buyers’ momentum holds, OKB’s uptrend will continue, reclaiming $148 resistance and targeting a new high.
Conversely, if profit takers overpower the market, another correction will follow with a dip to $92.7.
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