Akedo crypto rallies 59% after $62M unlock – What’s driving AKE?

Akedo [AKE] unlocked $62 million worth of tokens two days ago, equivalent to 9% of its circulating supply. During the past two unlocks, the altcoin dropped 22% and 49% in the following week.

This time, the market behaved differently. Although it fell to $0.021, it bounced back shortly after, flipped $0.03, and rose to $0.036.

As of this writing, AKE was trading around $0.035, up 59% on the daily charts. The price hike led to a Daily Turnover of $16 million, suggesting increased trading activity during the rally.

Is Akedo’s rally leverage-driven?

Akedo‘s recent rally has captured market participants’ attention, prompting questions about what’s driving it. Professor On-Chain noted that the recent hike was mostly leverage-driven, with Futures volume outpacing Spot volume by 93x.

A look at the derivatives market offers further insight into this claim. For starters, Akedo’s Futures Inflow rose to $215 million, while outflows fell to $207 million.

As a result, Futures Netflow rose 188% to $7.7 million. Additionally, the altcoin’s Open Interest (OI) surged 90.5% to $101 million, while derivatives volume rose 81% to $608 million.

The rising OI and volume indicated increased market participation as traders opened new positions. Meanwhile, the overall Long-Short Ratio rose to 1.03 as of writing, but the ratios on OKX and Binance remained below 1.

The overall ratio suggests a slight tilt towards long positions, while the ratios on OKX and Binance point to more short positions. This suggests mixed sentiment across exchanges.

Spot buyers are stepping in

Besides high leverage, Spot buyers are also chasing the rally. Coinalyze data showed that spot buy volume rose to 12.27 million, compared with 11.7 million in sell volume.

As a result, the Buy-Sell Delta turned positive, rising to 479k, suggesting that buying activity exceeded selling activity. On top of that, Spot Netflow also fell into negative territory again. At press time, Netflow was around -$220k.

A negative Netflow indicates that more assets are leaving exchanges than entering them, which may be consistent with accumulation but does not, on its own, confirm aggressive spot buying.

Can AKE hold the upside momentum?

Akedo is currently having strong bullish momentum. In fact, the altcoin’s Relative Strength Index (RSI) made a bullish crossover and rose to 57 at press time. At these levels, the indicator moved further into bullish territory, reflecting improving momentum.

Often, a rising RSI can accompany further gains. Therefore, if buying pressure holds across the market, traders could see Akedo extend its recovery and flip $0.04.

However, higher leverage poses a risk of larger losses and increased liquidations. If speculation fades, we could see another drop towards $0.021.

Final summary

• Akedo surged 59%, rebounded from a post-unlock slip, flipped $0.03, and rose to $0.036.
• AKE rallied, driven by strong speculative demand, with futures volume outpacing spot volume by 93x.