Kava Price Stuck In Consolidation Zone

In May, Kava price formed support at $0.89 level and commenced a bullish rally to finally shatter the wide-range consolidation zone. The cryptocurrency price has been stuck in a consolidation zone ranging $0.89 and $1.13 since the mid of January.

KAVA price attempted several times to break and close above $1.13 but could not sustain above it. In May, it finally shattered the resistance level of $1.13 and formed an annual high at $1.55. The candle also closed above $1.13 but it turned out a fakeout and price faced heavy rejection from $1.55.

As June started, the negative sentiment and fear around the crypto market started to rise due to the Securities and Exchange Commission’s lawsuit against some of the major cryptocurrency exchanges. Kava price melted to the major support level of $0.89 and again initiated a bullish rally to retest the annual highs.

The move was halted due to strong rejection from $1.28 and re-entered the consolidation zone. The price retraced and formed support at $0.91.

Recently, the price has entered into a narrow consolidation zone ranging between $0.91 and $0.97. If bulls can push price above $0.97, it might head toward the next resistance level of $1.13 causing an increase of 16.56%. On the other hand, if bears take control and drive price below $0.91, it might fall toward recently formed support of $0.76, experiencing a loss of roughly 16.33%.

Will KAVA Price Rise Above $1 This Week?

The Kava price trades above 20,50 and 100-day EMAs but the EMAs are moving sideways which denotes that price is in the decisive phase. Traders should wait for the candles to close above $0.97 or below $0.91. Chaikin money flow score is -0.09 indicating weakness in the market.

CMF has been below 0 mark since June telling that there is a bearish influence over the price. RSI trades at 51.88 denoting that price is in neutral territory and facing the same pressure from bulls and bears. The bands of Bollinger have contracted suggesting low volatility in the market.

Kava price has been hovering around the 20-day SMA with no major spikes. The long/short ratio is 0.97 with 49.27% longs and 50.73% shorts suggesting a slightly higher position of sellers in the last 24 hours.

Conclusion

The market structure and price action of KAVA is currently in an indecisive phase as the price is stuck in a consolidation zone ranging between $0.91 and $0.97. The technical parameters have not shown any major signs with respect to the price’s future direction.

Technical levels

Major support:$0.91 and $0.76

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.