Kava price has been in a bullish trend since May 8, 2023, after receiving rejection from the $0.667 level. The cryptocurrency price is currently headed toward retesting the annual highs of $1.219. Recently, the Kava price received rejection from $1.05 and had pullback to form support at $0.92 level.
The bullish rally for Kava crypto price began at the start of 2023 from the low of $0.53. Kava price upswing caused an increase of approximately 137% and the formation of a yearly high at $1.219.
If price is able to break above $1.05 level, there is a possibility for the Kava price to retest the supply zone of $1.12. On the other hand, if the price breaks below $0.85 level, there is a higher probability that the price might fall to $0.72.
Reason For Upsurge In Kava Crypto Price
The upsurge was due to the “Kava 13” upgrade. Kava 13 upgrade will help in speeding up the transaction on the network and offering security. The upgrade went live on May 17, 2023. The network will also facilitate the transfer of cosmos to protocols across Kava.
The change improves transaction speed and aims to beef up the security of the platform.
Over the past week, the coin price surged approximately 40% as it prepared to undergo a mainnet upgrade. Binance has announced that it will support the KAVA 13 upgrade.
On May 17, the exchange ceased deposits and withdrawals. Once the network is stable, binance resumes deposits and withdrawals.
Will KAVA Price Retest The Yearly Highs?
The bands of Bollinger have expanded due to high volatility in the market. Kava crypto price hit the upper band of the Bollinger which resulted in a pullback.
Currently, the price has formed support and is again headed toward the upper band. RSI trades at 63.01, indicating strong bullish momentum in the price, and will soon reach the overbought region, which might result in another pullback for the price.
Kava price touched the 70 mark and came straight down to form recent support.
Chaikin Money Flow score is -0.01, indicating that bulls are losing strength and price might receive rejection from the immediate resistance level of $1.02. The longs/shorts ratio is 1.15 with 53.53% longs and 46.47% shorts, indicating a strong presence of active buyers in the market in the last 24 hours.
Conclusion
The market structure and price action for Kava price are bullish but seem to be losing strength. Price needs to break above $1.05 level for retesting the highs and continuing the bullish trend. The technical indicators state that there is room for bullish strength left in the market.
Technical levels
Major support: $0.85 and $0.92
Major resistance: $1.02 and $1.12
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/2023/05/19/kava-crypto-price-prediction-kava-price-surges-after-upgrade/