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Akash Network [AKT] jumps 13% – But this breakout can hold ONLY IF…

Akash Network [AKT] jumps 13% – But this breakout can hold ONLY IF…

AMBCryptoAMBCrypto2026/08/04 18:03
By:AMBCrypto

Akash Network [AKT] rallied 12.59% over the previous 24 hours as buyers returned with noticeably stronger conviction across both spot and derivatives markets. 

Spot trading volume climbed 240.15% to $11.11 million, while market capitalization expanded 12.6% to $153.97 million, reflecting broader participation instead of isolated buying activity. 

Derivatives traders mirrored the same behavior, with trading volume surging 313.68% to $16.28 million, indicating a sharp increase in speculative interest. 

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The synchronized expansion across multiple metrics reflected growing confidence behind the recovery rather than a price advance driven by declining liquidity. 

However, the rapid acceleration in trading activity also raised expectations for sustained follow-through because elevated participation often increases short-term volatility once aggressive positioning begins to build.

Why did Open Interest keep climbing?

Fresh capital continued entering AKT’s derivatives market as Open Interest increased 20.24% to $9.56 million.

The rise revealed that traders opened new leveraged positions instead of merely closing existing contracts. 

The simultaneous rise in price, trading volume, and Open Interest reflected expanding market exposure rather than temporary repositioning. 

Such alignment generally points toward stronger speculative conviction because additional capital remained committed after the rally developed. 

However, the growing derivatives exposure also increased the market’s sensitivity to sudden price swings. 

Any decisive movement beyond nearby technical levels could trigger larger reactions across leveraged positions.

AKT escaped its descending channel, but can buyers clear $0.55?

AKT invalidated its prolonged descending channel after buyers forced price above the upper trendline and reclaimed the $0.52 region. 

The breakout shifted market structure away from the persistent lower-high pattern that had controlled price action for weeks. 

Buyers then approached the $0.55 resistance, which now represented the immediate barrier before any broader recovery could develop. 

Meanwhile, the MACD completed a bullish crossover as the MACD line moved above the signal line and the histogram turned positive, reflecting strengthening buying pressure after an extended bearish phase. 

Price still traded beneath the major $0.6755 resistance, leaving additional overhead supply intact. 

If buyers maintain control above the former channel resistance, AKT could challenge $0.55 again. 

Otherwise, the $0.4244 support would likely attract renewed attention should selling pressure return.

Long liquidations exposed bullish positioning

Derivatives liquidations revealed an unusual imbalance even as AKT advanced. 

Long positions absorbed approximately $25.19K in liquidations, while short liquidations totaled only about $10.78K across major exchanges.  

The data indicated that bullish traders remained vulnerable despite the broader recovery. This is because many leveraged longs still faced forced exits during sharp intraday fluctuations. 

Rather than signaling outright weakness, the imbalance reflected how volatile price swings repeatedly caught aggressive buyers before the broader advance stabilized. 

Continued leverage expansion could produce similar liquidation events if volatility remain elevated around key resistance.

Final Summary

  • AKT broke above its descending channel as stronger participation supported the recent recovery.
  • Rising Open Interest and heavier long liquidations showed bullish traders still faced elevated volatility.

 

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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