OKB price went parabolic last week and continued its strong momentum on Sunday as market participants reacted to its token burn announcement and execution. It was trading at $120 today, Aug. 17, up by 176% from its lowest point this month.
OKB Price Could Crash Soon
OKB is the native token of OKX, one of the world’s largest cryptocurrency exchanges. In a statement last week, the developers noted that it was incinerating 65,256,712 tokens currently valued at over $7.2 billion.
This token burn reduced the circulating tokens to 21 million, resulting in a market capitalization of over $2.56 billion.
OKX also announced that it would decommission OKTChain, which was created as part of its collaboration with Polygon, one of the top players in the layer-2 industry.
The next important catalyst for the OKX will be its Initial Public Offering (IPO), which may happen later this year in the United States. This IPO will likely be accelerated after last week’s Bullish IPO in which the company’s stock price surged.
Technically, the OKB price action demonstrates how the Wyckoff Theory works. As the chart below shows, the token remained in a tight range throughout the year, only to suddenly surge parabolically. This sideways movement was part of the accumulation phase of the Wyckoff Theory.
The surge was part of the markup phase of the Wyckoff theory. Therefore, there is a risk that it will now move into the distribution and the markdown phase, where the trend reverses.
Besides, data shows that the OKB price has become highly overbought, with the Relative Strength Index (RSI) rising to the overbought point of 85, and the MACD indicator soaring to its highest point in years.
The token also remains above the 50-day and 100-day Exponential Moving Averages (EMAs), a sign that bulls are in control.
However, it may crash because of the common concept of mean reversion, where an asset drops to move closer to its historical averages. If this happens, it may crash to the key support at $63, its highest point in 2024.
Bitcoin Penguins Gaining Momentum
Meanwhile, traders are turning to Bitcoin Penguins, one of the most popular presales of the year. Data shows that the BPENGU has already raised over $3.5 million in the last three weeks.
Bitcoin Penguins is an upcoming meme coins that combines the hype of Bitcoin and Pudgy Penguins (PENGU). PENGU’s market capitalization has jumped to over $2.1 billion, making it one of the best-performing tokens.
Bitcoin has become the biggest crypto in the industry with a market capitalization of over $2.2 trillion. Therefore, by combining these two themes, Bitcoin Penguins hope to become a leading meme coin.
Its token sale has been successful due to its model. For example, investors who bought it on the first day can expect to double their money when it lists in September. Also, the developers are targeting for the token to hit $2 by the end of the year. Hurry up and buy BPEP here.