Nervos Network (CKB) open interest drops: is it the end of the Upbit listing rally?

Nervos Network (CKB) has seen a sharp surge in its price, rising by over 140% in September, largely driven by its listing on South Korea’s Upbit exchange.

However, despite its strong upward momentum, signs indicate that the bullish trend may be losing steam.

With declining open interest and market sentiment, the question remains: is this the end of CKB’s explosive rally, or is there more to come?

Nervos Network (CKB) rally post Upbit listing

On September 13, 2024, Nervos Network (CKB) saw its price skyrocket after the announcement of its listing on Upbit, one of South Korea’s largest cryptocurrency exchanges.

The initial surge saw CKB gain 117% within 24 hours, bolstered by a staggering $418 million in trading volume.

Interestingly, the post-listing rally came after CKB had established a solid support level of $0.0070 between August 5 and September 5, ending a period of declining price action.

The token’s price has surged to a high of $0.020, a level not seen since June. However, it had slightly pulled back to around $0.018 at press time on September 19.

The listing on Upbit attracted a flurry of activity, with many speculating that the increased visibility in the Korean market could lead to broader adoption.

At its peak, CKB’s market cap hit $829 million, making it one of the top gainers among the leading 100 cryptocurrencies.

However, while the initial excitement surrounding the listing was undeniable, there are signs that this bullish phase may be reaching its end.

Why the CKB bullish trend could be coming to an end

According to Santiment, the weighted sentiment around CKB has been fading since September 15, just two days after the Upbit listing.

The Social volume, which measures how much an asset is discussed online, has also dropped off, indicating reduced investor interest.

Another critical factor contributing to the cooling momentum is the drop in open interest. From September 16 to September 19, CKB’s open interest has decreased by almost 22%, from $113.11 million to $88.62 million.

Source: Coinglass’ CKB Open Interest data

While open interest remains relatively high compared to pre-listing levels, the sharp decline suggests that fewer traders are opening new positions, which could indicate waning confidence in further upward price movement.

Additionally, CKB’s funding rate, which had plunged to negative 2.37% on the day of the Upbit listing, has now stabilized at around negative 0.2%.

Source: Coinglass’ CKB OI-Weighted Funding Rate data

While this rise in funding rates implies that long traders are still active, the previous surge from liquidations may not repeat itself.

With declining open interest, reduced market sentiment, and the fading impact of the Upbit listing, CKB may struggle to maintain its recent highs.

While a further price increase is possible, particularly if support holds at key levels like $0.013, the current signs point toward the possibility of a broader correction soon.

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