OKB, the native token of the OKX exchange, has grabbed market attention after a sudden and aggressive rally, climbing to a monthly high of $54.70. The bullish spike followed OKX’s completion of its 28th token burn, which saw over 42.4 million OKB permanently removed from circulation. This burn, valued at $2.26 billion, represented nearly 20% of the token’s circulating supply, triggering a supply shock that appears to have catalyzed a surge in investor demand and fueled renewed whale interest in the altcoin.

Before this breakout, OKB had been trending downward for much of the month, hitting a local bottom of $46 amid a broader market cooldown. However, the token managed to defend the crucial $49 support level multiple times before making a decisive upward move. Within 24 hours, OKB jumped more than 8%, reclaiming $54 and briefly touching $54.70 before consolidating slightly around the $53.90 range.

Token burns have long been a strategic tool in the crypto world to manage inflation and strengthen a token’s long-term value proposition. In OKX’s case, its token burn program is scheduled and transparent, offering market participants visibility into the tokenomics. This latest burn significantly reduces OKB’s supply, creating scarcity while interest remains steady or potentially rising—especially in the wake of shifting macro and crypto-specific market trends.

Supply alone, however, doesn’t move markets. The other major factor driving OKB’s rally was the strong return of whale investors. In the days leading up to the burn, large holder inflow for OKB had fallen to zero, signaling either profit-taking or hesitation among institutional players. Yet within the last 24 hours, on-chain data from IntoTheBlock revealed that whales scooped up more than 86 million OKB tokens—a massive turnaround that reflected revived conviction in the token’s near-term potential.

Whales re-entering a market after a brief retreat is often viewed as a bullish reversal signal, particularly when it happens in sync with positive structural changes such as a token burn. The combination of both these developments positioned OKB for a strong bounce, and the technical indicators now support the idea of a continued move higher.

Looking at the technical setup, the Relative Strength Index (RSI) for OKB recovered sharply from oversold conditions. It bounced from below 30 to a current level near 57, suggesting that buyers have taken control of market momentum. This rising RSI trend is further supported by a bullish crossover seen on the Stochastic RSI, an oscillator used to detect changes in momentum. Together, they point to a favorable environment for continued buying pressure—assuming market conditions remain stable.

Exchange flow data from Santiment further validates this bullish setup. The Exchange Flow Balance metric has flipped into negative territory over the last two days, indicating more tokens are being withdrawn from exchanges than deposited. This is often interpreted as a sign of accumulation, as traders tend to move assets off exchanges for longer-term holding when bullish.

Still, investors should keep an eye on short-term profit-taking. After any rapid rally, the risk of a pullback remains. OKB currently faces resistance at the $56 level—a price that aligns with both technical resistance and psychological significance. If bulls are unable to push past this barrier with sustained volume, some selling could emerge, particularly from traders looking to lock in gains after the recent bounce. In such a scenario, a pullback to the $49 support level remains a possibility.

However, if OKB can build a strong base above $53 and manage to break past $56 with confidence, the token could enter a new price discovery phase. With whale accumulation back in play and supply drastically reduced, OKB appears poised for a potential continuation of its bullish momentum. All eyes are now on whether buyers can hold the line and ignite the next leg of this breakout.