OKB, the native token of the OKX exchange, has become the center of attention with an impressive bullish increase of 18% – outperforming the general fall of the market. This is one of the strongest performances amid a sluggish market, demonstrating the appeal of this token to both spot and derive investors.
Since Wednesday, OKB has been continuously setting new daily highs, demonstrating remarkable resilience. While many other cryptocurrency assets are under selling pressure, the inflow of capital into OKB has increased significantly. On-chain data indicates that spot demand remains strong, while activity in the derivatives market for OKB is rapidly expanding.
Increased Confidence: Traders Double Long Positions
According to data from Coinglass, the open interest volume (OI) of the OKB futures contract has surged to an all-time high – reaching 23.21 million USD, corresponding to an increase of over 100% within just 24 hours. This is clear evidence of the growing interest from the derive investment community.
OI is an important measure that reflects the total value of open futures contracts. When this index rises sharply while prices are going up, it usually indicates that new capital is flowing into the market rather than just a rotation of existing positions.
OI of OKB futures contracts | Source: CoinglassThe leveraged betting capital is further consolidating the bullish momentum, as traders continuously expand their Long positions with the expectation that the bullish trend will be maintained. The combination of record OI and continuously high prices indicates that investor sentiment is shifting to an extremely optimistic state.
Funding rate shifts from negative to positive: A sign of a sustainable trend
Another notable bullish indicator comes from the funding rate of the OKB futures contract. Data from Coinglass shows that the weighted funding rate of this token has shifted from negative to positive, reaching 0.0732% – an important signal of a reversal in market sentiment.
When the funding rate is positive, traders holding Long positions must pay fees to the Short side, reflecting that the demand is absolutely dominant. In fact, many traders still accept to pay additional costs to maintain their Long positions because they believe that the upward trend will continue.
The funding rate of OKB | Source: CoinglassThis change not only demonstrates the strong leverage capital flowing into OKB but also further reinforces the belief that the current bullish momentum is likely to be sustained at least in the short term.
Price Scenario: Heading towards 260 USD or adjusting to 210 USD?
In the short term, buyers are aiming to bring OKB back to its historical peak of 257.57 USD, while also opening up the opportunity to set a new record if the buying pressure continues to remain strong. However, the risk of a correction still exists as profit-taking pressure could increase at any time.
In a bullish scenario, OKB maintains the inflow of funds and surpasses the 257.57 USD mark to establish a new all-time high. Conversely, if the selling pressure is overwhelming, the token is likely to lose some profits, retreating to the support zone around 210.57 USD.
OKB Price Chart | Source: TradingViewThe current price chart still shows a bullish trend dominating, but short-term profit-taking signs have also emerged, forcing investors to closely monitor to manage risks effectively.
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Traders are competing to go long on OKB, could there be another price shock?
OKB, the native token of the OKX exchange, has become the center of attention with an impressive bullish increase of 18% – outperforming the general fall of the market. This is one of the strongest performances amid a sluggish market, demonstrating the appeal of this token to both spot and derive investors.
Since Wednesday, OKB has been continuously setting new daily highs, demonstrating remarkable resilience. While many other cryptocurrency assets are under selling pressure, the inflow of capital into OKB has increased significantly. On-chain data indicates that spot demand remains strong, while activity in the derivatives market for OKB is rapidly expanding.
Increased Confidence: Traders Double Long Positions
According to data from Coinglass, the open interest volume (OI) of the OKB futures contract has surged to an all-time high – reaching 23.21 million USD, corresponding to an increase of over 100% within just 24 hours. This is clear evidence of the growing interest from the derive investment community.
OI is an important measure that reflects the total value of open futures contracts. When this index rises sharply while prices are going up, it usually indicates that new capital is flowing into the market rather than just a rotation of existing positions.
Funding rate shifts from negative to positive: A sign of a sustainable trend
Another notable bullish indicator comes from the funding rate of the OKB futures contract. Data from Coinglass shows that the weighted funding rate of this token has shifted from negative to positive, reaching 0.0732% – an important signal of a reversal in market sentiment.
When the funding rate is positive, traders holding Long positions must pay fees to the Short side, reflecting that the demand is absolutely dominant. In fact, many traders still accept to pay additional costs to maintain their Long positions because they believe that the upward trend will continue.
Price Scenario: Heading towards 260 USD or adjusting to 210 USD?
In the short term, buyers are aiming to bring OKB back to its historical peak of 257.57 USD, while also opening up the opportunity to set a new record if the buying pressure continues to remain strong. However, the risk of a correction still exists as profit-taking pressure could increase at any time.
In a bullish scenario, OKB maintains the inflow of funds and surpasses the 257.57 USD mark to establish a new all-time high. Conversely, if the selling pressure is overwhelming, the token is likely to lose some profits, retreating to the support zone around 210.57 USD.
Justin