OKX’s 90% supply burn sets OKB ablaze – Will price soar higher?
OKB has risen 312% since the 13th of August - the $175 support is one to watch in the coming days.
Key Takeaways
A 279 million OKB burn on the 15th of August sent OKB’s prices soaring. But it’s difficult to forecast how high price’s can go, since supply is not the only major factor determining the token’s future.
Centralized exchange OKX burnt 279 million OKB on Friday, the 15th of August. At press time, OKB’s total circulating supply was 21 million, per CoinMarketCap data, forming a neat mirror of Bitcoin’s [BTC] hard cap.
This was one of the steepest supply cuts implemented by a centralized exchange. In an announcement, OKX revealed that they are making a strategic upgrade to X Layer.
Analysts are thus calling for a price move beyond $300. It is still unclear just how much higher it can go, as supply is not the only factor that dictates prices. It would be best to wait for the market to show its hand.
Investor perception and demand would help determine OKB prices, and it is still being priced in.
AMBCrypto’s analysis shows that the market might be overheated, but that need not slow down the bulls’ march. What should traders and investors expect next?
OKB prices likely to shoot higher
After the rally to $73.7 in March 2024, OKB had settled into a retracement and fell as low as $30 in July 2024.
Even when Bitcoin rallied to $108k in December 2024, the altcoin was unable to breach the $73 highs, coming only as high as $60.
The recent burn news shifted the dynamics dramatically. Since the OKX announcement on the 13th of August, the token is up 312%.
As the weekly chart demonstrated, the market lacked a clear trend before the news came in. The DMI demonstrated this, as the -DI, +DI, and the ADX were all below 20 a week ago.
The RSI had also been below neutral 50, but has since shot higher. Its reading of 92 at press time was the highest on record, a sign that the market might be overheated.
However, the trading volume did not match the frenzy from the second half of 2021, keeping the A/D indicator flat relative to the previous bull run.
On the 4-hour chart, the bulls have already demonstrated that an overbought RSI does not indicate a steep pullback.
The $170-$175 region is a short-term demand zone that might be revisited, but the uptrend is likely to continue.
A fall below $170 might pave the way for a move to $130. Traders should be on the lookout for such a correction and limit their risks accordingly.
