OKB Surges to Monthly High as Whales Return
- OKB hits a monthly high as whales make a comeback.
- OKX has burned 42.4 million tokens worth $2.26 billion, causing a supply shock.
After a brief dip to $46, OKB has successfully defended the $49 support level and rebounded significantly. In the past day, the altcoin experienced a surge from $47 to a high of $54.7, hitting a monthly high in the process.
As of the latest data, OKB is trading at $53.93, marking an 8.03% increase over a 24-hour period.
The recent price uptick in OKB can be attributed to two primary factors:
Reasons Behind OKB Rally
Firstly, OKX completed its 28th token burn, eliminating 42.4 million OKB tokens valued at $2.26 billion from circulation. This action resulted in a 20% reduction in the total circulating supply of 300 million tokens. The token burn strategy aims to enhance scarcity and positively impact OKB’s price movement.
The supply shock created by the token burn contributed to the surge in OKB’s price. A decrease in supply coupled with steady or rising demand typically leads to price appreciation.
Secondly, large holders of OKB, known as whales, re-entered the market after a period of absence. These whales acquired 86.13 million tokens, signaling renewed interest and confidence in the asset’s potential.
Source: IntoTheBlock
The combination of reduced supply due to token burn and increased whale activity has positioned OKB for further price gains.
Potential for Sustaining Gains
Analysis indicates that OKB has been experiencing a gradual build-up of upward momentum amid growing buying pressure. The Exchange Flow Balance, which turned negative in the past two days, reflects significant accumulation.
Source: Santiment
Additionally, the altcoin’s RSI has shown a bullish trend, rising from 30 to 57 as buyers dominate the market. A bullish crossover on the Stochastic indicator further supports the upward momentum.
Source: Trading View
The current market conditions suggest that OKB could continue its upward trajectory towards the $56 resistance level. However, a potential pullback to $49 may occur if profit-taking by sellers follows the recent rally.