Akash Network – Why is AKT’s price up today?

Key Takeaways

Why did AKT moon by +30% over the weekend?

Broader crypto market recovery has lifted the altcoin on the charts. 

Can AKT reclaim $1?

Yes, it may be possible if profit-taking eases up. 

Like the broader market’s recovery, Akash Network’s native token AKT fronted a massive upswing over the weekend. Bitcoin [BTC] reclaimed $115k, lifting AKT by 31% on 26 October. 

However, at press time, it appeared that bulls were being rebuffed from reclaiming $1. In fact, AKT retraced some of its recent gains ahead of a likely positive macro week. 

Notably, reclaiming $0.85 and $1 could embolden bulls to seek the $1.5-target. But, can they extend the rally? 

Whale activity meets profit-taking

The latest upswing coincided with significant whale activity.

According to CryptoQuant, for instance, AKT’s extended pullback in October was marked by Big Whale Orders on the spot markets. 

Although the indicator does not show the direction of the whale activity, their intensity may have triggered the sharp rally on Sunday. 

Beyond the whale interest, this could have been a heated recovery following last week’s Amazon Web Services (AWS) cloud outage. The outage crippled several Web3 applications that depend on the provider for cloud services. 

As an alternative decentralized cloud provider in the Web3 space, Akash Network remained online. In fact, the protocol used the outage to bill itself as the solution to such a single point of failure. 

“Let’s turn this failure into a wake-up call.”

That being said, there seemed to be no excessive market froth that could trigger a massive liquidation risk or a reversal to be worried about. 

According to the Futures Volume Bubble Map, current levels are still in a “Cooling” phase. High risk levels or readings of “Overheated” red bubbles may be associated with local tops and likely reversals. 

Put differently, despite stalling near $0.85 after a 31% surge, AKT may attempt to clear the overhead hurdle. 

However, it could take a while before the bulls regroup again and make another attempt to reclaim $1. In the past few hours alone, more tokens flowed into exchanges than out – Underscoring profit-taking during the weekend pump. 

Until the profit-taking wanes, AKT bulls may stall below $1 before pushing forward to upside targets.