Traders speculate on CKB’s price decline as it skyrockets by 64% within a day.
The native token of the Nervous Network, CKB, has experienced impressive gains despite traders betting against its price surge.
In the past 24 hours, CKB has seen a 64% increase and is currently trading at $0.014. The market cap of the asset has surged to $612 million, making it the 108th-largest cryptocurrency. Additionally, CKB’s daily trading volume has seen a 50% rally, surpassing the $500 million mark.
Over the past 30 days, CKB has seen a remarkable 320% price surge. However, it is still down by 69% from its all-time high of $0.044 in March 2021.
The surge in CKB’s price can be attributed to the recent release of an extension protocol for the Bitcoin blockchain called RGB++ by Nervous Network on February 13. Shortly after the announcement, CKB experienced a 54% surge.
Data from Santiment reveals that CKB’s total open interest (OI) has increased by 430% since the launch of the RGB++ client. Currently, the token’s total OI stands at approximately $50 million.
Despite these positive developments, CKB’s total funding rate aggregated from all exchanges has dropped below zero. Santiment reports that the funding rate is around negative 0.18% at the moment. This indicates that short-position holders are currently dominating long traders and anticipating a price drop.
Santiment’s data also shows that CKB’s Relative Strength Index (RSI) is at 82.5, suggesting high price volatility and selling pressure. Whales may potentially manipulate the token due to these factors.
To maintain its positive momentum, CKB’s RSI would need to cool down to below 60. An RSI below 50 could bring further bullish momentum to the asset.
In conclusion, CKB has seen significant gains despite traders betting against it. The recent release of the RGB++ extension protocol and increased open interest have contributed to its price surge. However, the funding rate and high RSI indicate a potential price drop and manipulation by whales.
