Despite the prevailing bearish sentiment in the cryptocurrency market, the native token of the Nervos Network, CKB, has surged to its highest level in three years.
Over the last 24 hours, CKB has experienced a remarkable increase of 13.2%, reaching $0.035 at the time of writing. This price level has not been seen since March 2021, with the token’s market capitalization now standing at $1.55 billion, positioning CKB as the 69th-largest cryptocurrency by market capitalization.
Data from Santiment indicates that CKB’s total open interest (OI) has decreased by 6.8% over the past day, dropping from $70.17 million to $65.38 million. This decline suggests a potential reduction in price volatility for CKB.
Moreover, there has been a notable surge in CKB’s total funding rate, increasing from 0.011% to 0.019% within the same 24-hour period. This uptick suggests ongoing optimism among traders regarding a potential price rally for CKB as it reaches its three-year high.
A continuation of CKB’s upward momentum may lead to an increase in liquidated short positions among traders.
According to Santiment, the CKB Relative Strength Index (RSI) has risen from 69 to 73 over the past day, indicating that the asset is slightly overbought at its current price level. This could potentially prompt profit-taking activity among investors.
To sustain its bullish trajectory, CKB’s RSI would ideally need to drop below the 60 mark, indicating a healthier market sentiment.