OKB, the native token for Crypto Exchange OKX, has emerged as the top gainer today, beating the broader market decline with a 26% surge.
Exchange tokens have been in tears since Wednesday, setting new highs every day. Resilience amid the market slows, indicating strong tensions in demand, and on-chain data shows an increase in activity in the derivatives market.
Confidence increases sharply as OKB traders double in long positions
Coinglass data reveals that OKB’s open interest in futures has risen to an all-time high, pointing to an increase in participation from futures traders. At the time of writing, this is $23.21 million, exceeding 100% in the last 24 hours.
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Open profit measures the total value of unresolved futures contracts that have not yet been resolved and serves as a key gauge for market participation and trader convictions.
Looking at the surge in open profits while assets are rising prices indicates that new money is flowing into the market to support the trend, rather than simply turning. This influx of leveraged bets increases price momentum as bullish traders build longer positions in anticipation of further profits.
So OKB is climbing open interest along with the new daily all-time highs. There’s growing confidence that there’s room for extension in the rally.
Furthermore, the positive funding rate of tokens supports this bullish outlook. For each Coinglass, OKB’s weighted funding rate was 0.0732%, upside down from the negative value recorded yesterday. This reversal shows a shift in market sentiment from bearish to bullish, with OKB holders currently willing to pay a premium to maintain their long standing in hopes of more benefits.
Funding rate measures periodic payments exchanged between traders in perpetual futures contracts, ensuring that the contract price matches the spot market. If the funding rate is positive, long traders pay short traders, indicating that demand for bullish positions is overtaking bets.
OKB’s funding rate confirms the strength of the gathering and indicates that the market is increasingly confident that a higher price could be ahead.
OKB Bulls want $260, but the market can turn the price back to $210
If demand remains in place, OKB could revisit the current all-time high of $257.57 and try to record a new price peak in the next few sessions.
However, this can be prevented by an increase in profitable activity. If the sale begins and plunges to $210.57, OKB could lose some of its profits.
With Futures Traders first appeared on Beincrypto, OKB’s post rockets turned rockets into rockets at the highest ever high.
