The utility token of the OKEx crypto exchange, OKB [OKB], saw a 2.39% gain over the past 24 hours, at press time. This performance was not overwhelmingly positive, especially considering the price action in recent months.
OKB reached $258 in August. A retracement and a subsequent rally toward the end of September saw the price reach $238 in the first week of October. Since that move, OKB has shed 54% in under three months.
AMBCrypto observed that there is a chance the token is turning bullish.
Why an OKB recovery is possible
As the weekly chart illustrates, the swift uptick in July from $45 to $258 occurred in the space of ten days. The move came after a massive OKB token burn and its transformation into the gas of the X Layer.
Fibonacci retracement levels showed that the 78.6% level is at $90.71. The price reached a low of $91.77 on the 21st of November, a near-perfect retest of the support level, before bouncing higher.
The rebound has been far from straightforward. Momentum has shifted back and forth — first favoring the bulls, then swinging toward the bears, shown in cyan and orange.
During this period, technical indicators started to lean bullish but had not fully confirmed the trend. Notably, the A/D indicator signaled rising buying pressure over the past month, a constructive sign following the deep retracement.
The RSI was pushing toward neutral 50, but was unable to break through. It showed bearish momentum was weakening, but the trend was not yet wholly bullish.
Is OKB ready for a rally, or will it need more time?
Despite the deep retracement in recent months, the higher timeframe swing structure was bullish. The daily chart was oscillating between bear and bull. Given the bearish pressure on Bitcoin [BTC], an OKB rally would be difficult.
The events of 10/10 were not easily forgotten, and investor sentiment remained wary. Liquidity was also likely affected as market makers took a hit.
Hence, it is possible that OKB would spend more time consolidating.
Traders, here’s why OKB is a buy
The 1-day structure break came from the $104.4 swing low. The lower timeframe Fibonacci levels highlighted the importance of the $106-$108 zone as support. The imbalance on the 4-hour chart at $107 (white) also has confluence with the Fibonacci levels.
Traders can buy OKB, with a drop below $104.4 being their invalidation. Short-term targets would be $115.4 and $118.8.
Final Thoughts
- The OKB rally a few months ago has retraced, and the token is now consolidating and trying to push higher.
- It might not see an explosive breakout soon, but steady buying pressure could give lower timeframe traders a chance to go long and make profits.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
