OKB Price Approaches breakout, But $30.00 is the Biggest Obstacle

Summary:

The OKB price has gained 20% in the last two days as the exchange Token attracts willing buyers on the dips.

The OKB price has gained 20% in the last two days as the exchange Token attracts willing buyers on the dips. And if the current momentum carries through this week, OKB could soon break out on the upside.

OKB, the native token of the OKEx exchange has performed well in December, despite the overall weakness of the cryptocurrency market. The recent strength has lifted OKB to a 6% month-to-date improvement, extending the gains from the September lows to +190%. Subsequently, the token’s market cap has risen to $1.71 billion, ranking it the 70th most-valuable cryptocurrency behind Basic Attention Token.

OKEx’s diverse product offering has served the OKB token well. Many cryptos are experiencing volatile price action even as Bitcoin and Ethereum stagnate, keeping overall exchange volumes healthy. As a result, the OKB price is outperforming the broader market. Furthermore, if the token climbs above $30.35, the technical outlook improves dramatically, which could trigger a sustained rally into the May highs.

Token Price Analysis

The daily chart shows the OKB price is approaching trend line resistance at $30.35. In my opinion, successful clearance of the trend would constitute a bullish breakout, potentially targeting the May high of $44.35.

However, as we have seen in the past, sellers emerge above $27.00. Therefore, until the downtrend breaks, the outlook is unclear. Furthermore, if the breakout fails, OKB could turn lower. On the downside, a dip towards the 100-DMA at $21.66 offers a good entry point. However, a daily close below the indicator could extend to the 200-DMA at $18.70.

For now, I am cautiously optimistic. However, as mentioned, the trend resistance will decide the immediate fate for OKB. On that basis, traders should wait for confirmation rather than entering trades at the current level.