In the last few days we’ve seen the impressive crypto performance from July and August – Bitcoin (BTC) breaking a multi-year barrier and following through on it – take an inevitable correction. This correction has rippled into the altcoin markets as well, and OKEx’s exchange token OKB’s long uptrend looks a bit stalled on the high timeframe charts.
Starting on the daily charts, we see that the medium-term market is threatening to head down if $5.50 cannot be held. This zone marks the inflection point of this timeframe, and we have already seen one breach-with-defense of this area. OKB can probably not absorb another.
We don’t get any hints of reversal on the RSI, with no divergences and a downtrend gradually going flat. The histogram is not looking good, with a larger formation down and a descending histogram. We could well see a breakdown.
Going to the weekly, we see price just holding on to the 21 EMA, after having tested it already a couple of months ago. If we lose the 21, the 55 is the next bet at somewhere between $4 and $4.50.
The good news is that, holding there would still constitute a higher high on the high timeframe, and thus not destroy the (very) long term uptrend. The absolute bottom of this chart is about $3.50.
Things look rosier for daytraders, with a reverse head and shoulders having put in work in the last few days. A classic bull divergence signaled a surge, and the bullish MACD/histogram suggests that this could continue up to the shoulder line around $5.80.
But because of the larger bearish picture, we can’t expect more than that.
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