OKB Technical Analysis: Inverted Head And Shoulder Teases Reversal

The OKB price action maintains a trend between $13.5 and $16.5, leading to a bullish pattern reflecting an increase in underlying bullishness. However, as the neckline at $16.5 coincides with the 50% Fibonacci level, the buyers will have difficulty giving a bullish breakout. So, should you consider grabbing the bullish opportunity?

Key Points:

Source - TradingView

OKB Technical Analysis

The OKB price displays a bullish failure to exceed the $16.5 resistance level leading to a base formation at the psychological mark of $15. However, the price action demonstrates the possibility of an inverted head and shoulder, as marked in the technical chart.

Currently, the bottom formation at the $15 mark signifies the right shoulder of the bullish pattern, with the neckline at the overhead resistance of $16.5. Furthermore, the neckline overlaps with the 50% Fibonacci level making the neckline an area of high selling pressure.

Coming to the daily EMAs, maintaining a lateral trend, the recent reversal from $16.5 increases the bearish crossover chances between the 50 and 100-day EMA.

If the OKB price trend completes the bullish pattern, the breakout rally can boost the market price to $20, possibly leading to a golden crossover. However, a reversal in OKB prices from the $16.5 neckline will push the prices back to the $13.5 mark.

Technical Indicators

The RSI slope shows a lateral growth below the halfway line but sustains above the 14-day SMA. Moreover, the MACD and signal lines show a bullish alignment but maintain a lateral shift. As a result, the OKB Technical Analysis takes a neutral standpoint but offers a short-term buying opportunity as the bullish pattern completes.

Resistance Levels - $16.5 and $20

Support Levels - $15 and $13.5