- OKB is the native token for the OKEx ecosystem.
- The OKB price has crashed hard in the past few months.
- We explain what to expect in the coming days.
The OKB price is crawling back as cryptocurrency prices attempt a slow recovery. The coin is trading at $22.57, which is about 20% above the lowest level during the weekend. It is still down by about 33% from its highest level on record, bringing its total market capitalization to about $5.9 billion. It is the 33rd biggest cryptocurrency in the world.
What is OKB?
OKEx is one of the biggest blockchain companies in the world. It operates a centralized and a decentralized exchange that handles billions of dollars where buyers can buy cryptocurrencies like Ethereum and Bitcoin. According to CoinMarketCap, it is among the top-ten of the biggest exchanges by volume.
OKB is the native token for the OKB ecosystem. Holders of this token enjoy several benefits. For example, they enjoy trading discounts when using the coin in its ecosystem. Users also are able to earn passive income.
The value of the OKB token comes in a number of ways. For example, the OK Blockchain Foundation regularly burns OKB tokens in a bid to boost their prices. Already, they have completed about 13 burns.
Also, they use the fees generated from the OKEx market to buy back the tokens. Think of this as the normal share buybacks that are done by companies, which in turn boosts their earnings-per-share (EPS).
Like all cryptocurrencies, the OKB price has retreated sharply in the past few weeks. The decline has happened because of the rising fears of high interest rates by the Federal Reserve and regulatory concerns. Historically, risky assets like cryptocurrencies tend to underperform in a period of high interest rates.
Last week, Russia made headlines when the country’s central bank hinted that the government should ban cryptocurrencies. Therefore, like we saw last year when China cracked down on cryptocurrencies, the recent sell-off is because of fear of the implication. Besides, China is one of the biggest players in the industry.
OKB price analysis
The four-hour chart shows that the OKB price has been in a strong bearish trend in the past few months. The coin moved to a low of about $19, which was the lowest level since December 4th last year. In the past few days, the pair has crawled back and is attempting to move slightly above the 25-day and 50-day moving averages.
Therefore, in my view, this performance is a dead-cat bounce, meaning that the coin will likely resume the bearish trend in the coming days. If this happens, the next key support level to watch will be at $19.
