Kava price has been stuck in a wide consolidation zone ranging between $0.70 and $1.20 after the price initiated a bullish rally. The bullish rally began during the start of 2023, when price surged up from the low of $0.514 to form a high at $1.219. The price then entered into a bearish trend and melted down to form support at the $0.70.
During May, the price again gained bullish momentum and started to rise toward the resistance level of $1.20. Kava price managed to break the resistance level but could not stabilize above $1.20. This move led to the creation of an annual high at $1.55. The candle of May 23 closed with a long upper wick, indicating strong rejection.
The price is struggling to stay above $1 but the bears do not find this price justifiable. Recently, the price has formed a support level at $0.75 and has tried to retest the annual high but the bullish momentum could not be sustained.
Currently, Kava price is in a bearish momentum after the price faced resistance from the $1.13 level. The price is headed toward the next support level of $0.89. If the bears can push the price below $0.89, there is a high probability for the price to head toward $0.75.
On the other hand, if the price can form a strong support and rise above the immediate resistance level of $1.13, it might fill the upper wick of the June 25 candle. The market capitalization of Kava is down by 4.33% to $559 Million. The 24-hour volume is up by 0.39%. The cryptocurrency’s price is down by -89.78% from the all-time high of $9.19.
Will KAVA Price Melt Down to the $0.75 Level?
Kava price is on the verge of crossing the 20,50 and 100-day EMAs negatively, indicating increasing bearish momentum in the price. The Chaikin money flow score is -0.13, indicating weakness in the market. Relative strength index (RSI) trades at 50.04 in the neutral territory but is headed downward.
The price has reached the upper band of bollinger and has started to retrace toward the lower band. The long/short ratio is 0.92 with 47.94% longs and 52.06% shorts, indicating a higher pressure from the selling side in the last 24 hours.
Conclusion
The market structure and price action of Kava has turned bearish after facing rejection from the $1.13 level. The technical parameters are suggesting that there is high selling pressure over the price and that it might head toward $0.75.
Technical levels
Major support: $0.75 and $0.53
Major resistance: $1.13 and $1.28
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.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing
Source: https://www.thecoinrepublic.com/2023/06/28/kava-price-prediction-kava-price-enters-into-a-corrective-phase/