Analyzing KITE’s 23% surge: Can bulls target $0.3 next?

KITE bounced back from a $0.21 slip and touched an intraday high of $0.2718 before a slight retracement. As of this writing, Kite [KITE] traded at $0.2715, up 23.04% on the daily charts, extending its week-long uptrend. 

Over the same period, its market cap jumped 23% to $488 million, reflecting steady capital inflow.

KITE buyers return with conviction and defend key levels

After KITE dropped to a low of $0.21, buyers returned with conviction to avoid further downside. In fact, the altcoin recorded 1.3 billion in Buyer Volume compared to 805 million in Seller Volume. 

As a result, the market recorded a positive Buy Sell Delta of 542 million while the SMA rose to 929 million. Such a massive jump in demand-side liquidity signaled aggressive spot accumulation. 

Source: TradingView

Additionally, buyer dominance rose to 308 million while seller dominance dropped to -237 million. With buyers overwhelming sellers, it signalled a significant shift in market sentiment toward bullishness. 

On the futures side, risk appetite recovered, and investors significantly increased their exposure. According to Coinglass data, KITE saw $70.72 million in Futures Inflows compared to $60.66 million in Outflows. 

Source: CoinGlass

As a result, the altcoin’s Futures Netflow jumped 203% to $10.06 million, indicating increased demand for futures positions. 

Strangely, most of these funds flowed into short positions. According to Coinalyze data, on Binance and Bybit, the Long Short Ratio dropped to 0.62, with shorts accounting for 61% of the total.

Source: Coinalyze

A higher demand for shorts implies that most participants are bearish and expect prices to drop in the short term.

Historically, higher capital inflows across spot and futures markets have accelerated upside price momentum, leading to higher prices, as witnessed.

Is the upside momentum sustainable?

KITE rebounded on its price charts as buyers returned with strength, bringing along fresh capital across the spot and futures markets.

For that reason, the altcoin’s Relative Strength Index (RSI) made a bullish crossover and settled at 66 as of this writing. A bullish crossover here signaled strong upward momentum driven by considerable demand.

Source: TradingView

However, with the RSI signal line also holding at 65, it suggests that traders are also increasingly active in the market, and their threat is significant. In fact, the altcoin still holds below its Parabolic SAR.

With the sharp trend reversal, KITE is currently testing its ATH at $0.28. A close above its SAR will validate the bullish structure, flip $0.28, and surpass $0.3.

However, if the selling threat persists and bears overwhelm bulls, the altcoin will pull back to $0.22.

Final Summary

• Kite [KITE] bounced back from a $0.21 slip, soaring 23% to a local high of $0.27. 
• KITE saw fresh capital across the spot and futures market, accelerating upside momentum.