OKB’s current pattern mirrors pre-August surge: Will history repeat?

Key Takeaways

Holding addresses dipped sharply in 24 hours while sending addresses into exchange surged, hinting at profit-taking. A similar setup in July preceded weeks of consolidation before OKB’s mid-August rally.

OKB [OKB] seems to be entering another profit-taking phase after a strong week of gains. The last time such development were witnessed was back in early July before the August explosive bullish run.

AMBCrypto close analysis of the recent on-chain data showed that the number of addresses holding the token has dropped sharply in the past 24 hours until press time.

At the same time, more transactions were moving to exchanges — a sign that some holders may be preparing to take profits.

Source: TradingView

Signs of profit-taking

When coins leave wallets and head to exchanges, as seen from the recent surge in active sending addresses, it usually signals that traders are driving much liquidity into the market.

Combined with shrinking holding addresses, the pattern suggests a short-term shift in sentiment.

After several days of steady OKB bullish run, some investors appear to be trimming positions rather than accumulating more as they await for the market direction confirmation.

Source: CryptoQuant

A familiar setup is repeating

This is not the first time OKB has flashed such signals.

The last major dip in holding addresses came on the 7th of July. Prices stalled for weeks after that, only to break out in mid-August with one of the token’s strongest rallies this year.

The similarity is worth noting: what looks like weakness can sometimes be a reset that clears the way for the next leg higher.

Source: TradingView

What’s next for OKB?

The coming days will be critical. If the number of transaction flowing to exchanges continue to pile up, sellers could gain the upper hand, forcing a deeper pullback.

On the other hand, if buying demand holds firm at key support levels, OKB could simply enter a consolidation phase before attempting another breakout.

However, the increasing retail activity could cave a way for the long term holders to chip in. CryptoQuants data indicated a surging retail orders in both spot and Futures market.

This could speak volumes in the near future and provide the required direction hint require by long-term investors.

Source: CryptoQuant