OKB (OKB) Price Could Fall Nearly 20%, Here’s Why?
The price of OKB (OKB) has created a deviation above a long-term range and is showing signs of weakness. It is likely to continue declining in the near future.
The OKB price has been trading within a long-term range of $40 to $55 since early February 2023. During the week from November 6 to 12, OKB broke above the range and reached an all-time high of $65. This indicates that the price entered a price discovery zone, and a strong rally could follow.
However, instead of continuing upward, OKB retraced back within the range during the week from January 8 to 14, 2024, creating a deviation above the $55 resistance level (indicated by the red ellipse). Such deviations are considered bull traps and are often followed by sharp price declines.
The weekly RSI (Relative Strength Index) showed significant bearish divergence before the price declined and dropped below the 50 level, indicating that the bears have regained control.
Therefore, the OKB price may further decrease by 16.76% toward the long-term support at $40 in the near future.
The daily chart reveals that the OKB price has declined below a gradually descending resistance line since the aforementioned new ATH. Most recently, this resistance line rejected the price on January 26, 2024 (indicated by the red arrow).
This rejection caused the price to drop back to the minor horizontal support at $48 once again.
The daily RSI was rejected at the 50 level simultaneously with the price rejection from the resistance line, and it is currently trending downward, suggesting that the bears have taken control of the near-term price action.
Therefore, the price could break below the $48 level in the next few days and decline further.
The most likely scenario suggests that the OKB price will decrease toward the long-term support at $40 in the near future.
Disclaimer: Please note that this article is for informational purposes only and should not be taken as investment advice. As an investor, it is important to do your own research before making any decisions. We are not responsible for any investment decisions you make based on this information. Not Financial Advice.
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