OKB Price Analysis: Bollinger Bands Squeeze and Hook Pattern

OKB has been one of the top-performing cryptocurrencies over the past week, with more than 58% gains. A very rare chart pattern, which on the surface might not say much, is pointing to a trend in the making. The recent explosive move was triggered by the Bollinger Bands squeeze and hook pattern.

Bollinger Bands Squeeze Pattern
In technical analysis, the Bollinger Bands squeeze happens when the two bands turn flat and get closer to each other. This indicates that there is an ongoing ranging market. This implies that when the Bollinger Bands are flat, the price tends to make explosive moves in either direction.

Often, consolidations lead to trend expansion, but many times there are false breakouts too. To distinguish between a false breakout and a genuine breakout, the Bollinger Bands come in handy.

When we have a breakout and the upper band “hooks” upwards, while the lower band hooks downwards, there is a higher probability of a trend continuation in the direction of the breakout.

The daily OKB price chart displays the exact pattern described above. The upside breakout was accompanied by the Bollinger Bands hook in the opposite direction.

Moving forward, if OKB sustains the break above the $25.21 resistance level, there is a high probability for the bulls to challenge the next resistance level found at $42.16.

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