In the cryptocurrency markets, attention has turned to the OKB token, which saw a dramatic 160% increase in the past 24 hours.
OKB, the native token of OKX, briefly surged above $135, reaching an all-time high. However, questions remain concerning the sustainability of this rapid rise over the long term. Despite the surge, analysts have identified three critical indicators suggesting potential selling pressure in the market.
Exchange Inflows May Trigger Selling Pressure
According to data provider Nansen, there has been an influx of 553,000 OKB tokens into exchanges in the last 24 hours. This equates to a volume of about $58 million, reflecting a 36% increase. Moving such a significant amount of tokens to exchanges often lays the groundwork for selling activity, especially following a price surge.
Yet, there is a noticeable divergence in the behavior of major investors. Currently, the top 100 OKB addresses collectively hold over 299.93 million tokens, with a 25% increase observed in their holdings recently. This suggests that whale investors may have the potential to absorb the selling pressure in the market. Nevertheless, experts caution that accumulation in large wallets does not always support prices in the short term and may instead reflect a long-term strategy.
Nansen’s report states, “While the amount of tokens entering exchanges emerges as a significant indicator of selling pressure, continued purchases by large investors may limit potential declines.”
Liquidation Zones and Short-Term Risks
Market analysis reveals that BingX’s liquidation map highlights a $1.1 million long position concentrated at the $92.6 level. If the tokens entering exchanges lead to selling activity and a price decrease, triggered liquidations at this point could pave the way for larger-scale sell-offs.
Compulsory sales resulting from horizontal trends or downward movements could create a ripple effect leading to further price declines. According to experts, the recent rally has left little space between the price and critical liquidation levels, raising the possibility of a rapid correction in the short term.
BingX analysis notes, “Once the primary liquidation level is breached, the risk of triggering successive new sell orders may arise.”
Technical Indicators Signal Weakening Trend
OKB’s price has shown volatile movements on a daily basis, while weekly charts indicate more sustainable trends. The chart shows difficulty surpassing the $142 level, but currently maintains support at $102. Experts warn that if this support level is breached, significant long positions between $106 and $102 could be liquidated.
The Chaikin Money Flow (CMF) indicator has also formed a lower peak compared to November 2024, indicating a lack of new capital entering the market even if price peaks are observed. Analysts believe that the recent surge is primarily driven by news rather than market fundamentals.
A market strategist commented, “The loss of strength in the CMF, combined with the selling wall and liquidation clusters, poses risks to upward momentum.”
If the current $102 support holds, the next significant support levels on the weekly chart are around $90 and $78. A drop to these levels could signal a rapid price decline. However, if the price breaches the $118 resistance, exchange inflows decrease, and large addresses continue accumulation, the short-term bearish scenario might weaken, allowing the price to retest $142.
