The OKB-token price has experienced a significant surge, rising by almost 200% to an all-time high of $125.88, but the mood in the market has shifted, and a reversal is possible due to negative weighted sentiment and increased short positions.
According to Crypto.News, the native token of Crypto Exchange OKX, OKB, saw a substantial increase in value, with its market capitalization reaching $7.4 billion at its peak. However, the token has since retreated to $104.4, and it is likely to continue seeing losses as the bearish sentiment in the market grows.
Market Sentiment and Whale Sales
Data from Santiment shows that the weighted sentiment of OKB has moved further into negative territory after its recent gains, indicating that retailers are increasingly expecting a potential retreat. The weighted funding rate in the futures market has also turned negative, signaling that a growing number of traders are opening short positions to bet against further price increases.
The decline in OKB’s price can be attributed to the sale of whale investors, who are unloading their OKB holdings. Santiment data reveals a strong decline in the number of whale addresses holding between 10,000 and 100 million tokens after OKB’s price surge. This sale of whale investors could lead to further declines if it triggers panic sales among retail traders who often follow these large investors in and out of positions.
Source: Santiment
It is common in the cryptocurrency market for early investors to sell their investments to lock in profits after a cryptocurrency has reached an all-time high. Such actions can accelerate a price drop for OKB if they are met with a wider market sell-off, especially since the entire cryptocurrency market remains near its new highs and may be exposed to increased volatility.
OKB Price Analysis
In the daily chart, OKB’s price has not established a clear pattern, as its recent increase has been preceded by months of consolidation between $34 and $65 since the beginning of the year.
OKB Price, RSI and ADX diagram – August 14 | Source: crypto.news
The relative strength index (RSI) has formed a bearish divergence after entering the overbought zone at 95 and then retreating to 91. This marks a slight retreat, and the indicator remains in an extremely overbought area, still signaling an increased risk of correction. The average directional index (ADX) is currently at 24, indicating that a potential reversal trend is developing but not yet in full strength. A reading above 25 would confirm that the reversal is gaining momentum.
The Fibonacci retracement analysis identifies the next significant support level at $81.96, which corresponds to the 38.2% level. A decisive break below this level could open the way for a lower decline to $44.20, an important long-term support zone. If buying pressure emerges and OKB bounces off $81.96, this could signal the beginning of another upward move for the token.
The next few days will be crucial in determining whether OKB can stabilize at higher levels or give up its gains as the momentum fades after the rally. For more information and updates on the OKB token price, visit https://crypto.news/will-okb-token-price-crash-after-200-surge/
