The cryptocurrency OKB has hit a monthly high of $54.7, fueled by a significant 42.4 million token burn executed by OKX, valued at $2.26 billion. This 20% reduction in the circulating supply of 300 million tokens has sparked a supply shock, driving the altcoin’s price upward from a recent low of $47. As of now, OKB trades at $53.93, marking an 8.03% increase in the last 24 hours, according to AMBCrypto’s latest analysis.
The token burn, the 28th in OKX’s series since 2019, aligns with a strategy to enhance scarcity and value, a move supported by historical data showing over 100 million OKB burned to date (CoinMarketCap). Research from the Journal of Financial Economics (2019) suggests such supply reductions can boost crypto prices by intensifying demand, setting OKB apart from inflationary traditional currencies. This burn, combined with whale accumulation of 86.13 million tokens, signals robust investor confidence, as large holders re-entered the market after a brief absence, per IntoTheBlock data.
Technical indicators further bolster the bullish outlook. A negative exchange flow balance, reflecting higher outflows than inflows, indicates massive accumulation, while the Relative Strength Index (RSI) has risen from 30 to 57, and a bullish stochastic crossover emerged, per Santiment and TradingView insights. These metrics suggest OKB could challenge the $56 resistance if buying pressure persists.
However, analysts caution that profit-taking by sellers could pull the price back to $49 support. For now, the prevailing market conditions—driven by supply shocks and whale activity—position OKB for potential gains. Investors are watching closely as OKX’s quarterly burn strategy and whale interest could shape the altcoin’s trajectory in this dynamic crypto landscape.
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