KAVA coin price fell 7.55% in the current week and showed initial signs of correction. It formed a giant bearish candle that engulfed the majority of gains generated in December 2023.
Kava price lost the bullish momentum near $1.00 and sellers came forward to push the price downward. The recent sharp downfall in this crypto is supported by a high selling volume. It means some genuine investors had taken exit and cashing out investment.
If the Kava price declines more, existing investors may get panicked and outflow may continue. On the lower side, the $0.694 level is one of the swing-low support visible on the chart. The bear might soon attack this level and try to snatch control from bulls.
However, if buyers are active and succeed in defending the support, then be prepared for a wild move in an upward direction.
At present, the EMAs are acting as a support. However, due to the strong presence of sellers, the EMA support is getting weaker, so a breakdown may be visible. Currently, KAVA crypto price is trading at $0.804 with a one-day decrease of -4.29%.
Sharp Decline in KAVA Coin; Is the Trend Turned Bearish?
KAVA coin entered into a correction phase because it broke the chain of higher high swings. The next phase of downfall may trigger if sellers succeed in taking over the control at the $0.694 level.
The confirmation of the bearish trend reversal will come when the price closes below the 50-day and 200-day EMAs.
Sellers look very aggressive, so the probability of more downfall is substantially high. Therefore, short-term traders should look for sell-on-rise opportunities until the price trades below $1.00.
Downfall in Kava Hurts Investors’ Sentiment
Kava price is inside the bear’s grip and no signs of bounce back are visible. The price action of this crypto has turned bearish, which hurts the sentiment of investors.
The RSI at 43 and dives downward, indicating weakness. The more downfall might push the price into the oversold territory. The MACD curve reverses down and the histogram bar is red, indicating that the price may continue to trade with a bearish bias.
Conclusion
KAVA coin price is turning bearish and triggers the outflow of money. The sellers are dominating so they may drag the price further down to $0.700. The analysis suggests, investors should look for sell-on-rise opportunities until reliable signs of bounce are visible.
Technical levels
- Resistance levels: $0.974 and $1.074
- Support levels: $0.694 and $0.558
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Adarsh Singh is a true connoisseur of Defi and Blockchain technologies, who left his job at a “Big 4” multinational finance firm to pursue crypto and NFT trading full-time. He has a strong background in finance, with MBA from a prestigious B-school. He delves deep into these innovative fields, unraveling their intricacies. Uncovering hidden gems, be it coins, tokens or NFTs, is his expertise. NFTs drive deep interest for him, and his creative analysis of NFTs opens up engaging narratives. He strives to bring decentralized digital assets accessible to the masses.Adarsh Singh is a true connoisseur of Defi and Blockchain technologies, who left his job at a “Big 4” multinational finance firm to pursue crypto and NFT trading full-time. He has a strong background in finance, with MBA from a prestigious B-school. He delves deep into these innovative fields, unraveling their intricacies. Uncovering hidden gems, be it coins, tokens or NFTs, is his expertise. NFTs drive deep interest for him, and his creative analysis of NFTs opens up engaging narratives. He strives to bring decentralized digital assets accessible to the masses.
Source: https://www.thecoinrepublic.com/2024/01/05/kava-coin-analysis-decline-in-kava-triggers-outflow-of-money/