Key takeaways
Why was AKT up +30% over the weekend?
The broader crypto market rally has lifted the altcoin onto the charts.
Can AKT claim $1?
Yes, it may be possible if profit taking decreases.
Much like the broader market recovery, Akash Network’s native AKT token faced a massive rally over the weekend. bitcoin [BTC] recovered $115,000, lifting AKT by 31% on October 26.
However, at the time of publication, it appeared that the bulls were being denied the chance to reclaim $1. In fact, AKT gave back some of its recent gains ahead of a likely positive macroeconomic week.
Source: AKT/USDT, TradingView
In particular, reclaiming $0.85 and $1 could encourage bulls to go for the $1.5 target. But can they extend the rally?
Whale Activity Meets Profit Taking
The latest rebound coincided with significant whale activity.
According to CryptoQuant, for example, AKT’s prolonged pullback in October was marked by large orders from whales in the spot markets.
Source: CryptoQuant
Although the indicator does not show the direction of whale activity, its intensity may have triggered Sunday’s sharp rally.
Beyond the whale interest, this could have been a heated recovery following last week’s Amazon Web Services (AWS) cloud outage. The outage crippled several Web3 applications that rely on the vendor for cloud services.
As an alternative decentralized cloud provider in the Web3 space, Akash Network remained online. In fact, the protocol used that the interruption is presented as the solution to that single point of failure.
“Let’s turn this failure into a wake-up call.”
Source: X
That said, there did not appear to be excessive froth in the market that could trigger a massive liquidation risk or reversal to worry about.
According to the futures volume bubble map, current levels are still in a “cooling” phase. High risk levels or “overheated” red bubble readings may be associated with local highs and possible reversals.
Source: CryptoQuant
Put another way, despite stalling near $0.85 after a 31% surge, AKT may attempt to overcome the overall hurdle.
However, it could be a while before the bulls regroup again and make another attempt to recapture $1. In the past few hours alone, more tokens entered exchanges than exited, underscoring the profit-taking over the weekend.
Source: CoinGlass
Until profit-taking subsides, AKT bulls may stall below $1 before moving towards bullish targets.
