Journalist
Posted:
- The CKB token saw massive gains, breaching two-month highs.
- Some short-term volatility and profit-taking could see the price and the OI decrease.
Nervos Network [CKB] was beginning to trend upward with force. The previously dormant trading volume skyrocketed higher. Within a day, it went from $5.94 million in trading volume to $264 million on the 13th of September.
A 51% price surge accompanied this vast volume increase. Since then, the token has continued to trend higher. What is the Nervos Network price prediction for the coming weeks?
Nervos Network breaks July highs
Source: CKB/USDT on TradingView
The trade volume surge on the 13th of September saw the token close the trading session 51% higher than where it started. Since then, it has gained an additional 14.2%.
The daily RSI was above 70 to show overbought market conditions. Hence, the momentum was firmly bullish, but there’s also a chance of a price correction.
Therefore, the Nervos Network price prediction, though bullish, could see short-term pullbacks.
The OBV had been in a downtrend since April, but the recent price pump revived its uptrend. This wave of buying pressure might set up a sustainable rally.
To the north, the $0.02 and $0.026 levels were the next key resistances.
CKB confident of a good performance
Source: Coinglass
The Open Interest rose from $11.3 million to $104 million on the 14th of September. This nearly 10x OI growth signaled the huge influx of speculators into the market. It also underlined bullish expectations.
In the short-term, this could be the undoing of the bulls. The huge speculative volume around the rally would mean the price would be busy hunting down the late long positions instead of continuing the trend.
It remains to be seen if the market is overextended like mid-April earlier this year.
Source: Santiment
Realistic or not, here’s CKB’s market cap in BTC’s terms
The Weighted Sentiment reached levels not seen in over six months. The development activity was trending lower in recent months but still relatively high.
Overall, long-term Nervos Network investors can be confident of another rally, but short-term volatility was a threat.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
