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- 1 Kava price is currently trading at $1.044 while witnessing a decrease of -3.51% during the intraday session.
- 2 The year to date increase in the Kava price is 82.02% while one week change is -11.31%.
- 3 The KAVA/BTC is trading at 0.00003864 with a decrease of -1.13% at the time of writing.
Kava is the native token of Kava platform, which is a layer-1 blockchain that combines the speed and interoperability of cosmos with developer power of ethereum. The month of May turned out to be the best month for kava prices since January. On May 8, Kava price formed a support at $0.72 level and gained bullish momentum to target the annual high.
The price did shatter the annual high of $1.219 after rising from the support. The new annual high is formed at $1.55. May month showed a return of 131% from the low of $0.72 to forming a high at $1.55 level.
Price received heavy rejection from $1.55 level and Kava price closed below $1.20. The cryptocurrency price formed a support at $1.09 level which was shattered by the previous candle.
The bears are pushing price below $1 level and if that happens, there is higher probability for the price to head toward the next support level of $0.92 level causing a drop of roughly 8%. On the other hand, if bulls can push price above $1.20 level, there is a probability that price might head toward $1.55 and fill the long wick to the left.
Reason For Kava Price Surge
Positive sentiment was on rise in the kava ecosystem as kava recently partnered with Terra (LUNA) blockchain. Kava users will now be able to access Terra stablecoin, UST, on the kava platform.
Kava has also teamed up with Aave decentralized finance protocol which will allow users to borrow and lend assets using Aave lending protocol. Additionally, Kava also launched a new product called Kava yield optimizer that will allow users to earn yield on their Kava token.
Will KAVA Price Fall Below $1 level?
The Kava price has crossed 200 and 20-day negatively indicating an increasing bearish momentum in the price. Chaikin money flow score is -0.27 suggesting strong weakness in the market. RSI reached the overbought zone and started to reverse and is currently trading at 53.98.
Kava price reached the upper band of bollinger and is headed toward the lower band which resides near the $0.72 level. For the price to retest the resistance level of $1.20 level, it needs to stay above $1. The long/short ratio is 1.00024 with 50.06% longs and 49.94% shorts indicating the same pressure from bulls as well as bears in the last 24 hours.
Conclusion
The market structure and price action of Kava is slowly turning bearish. The technical indicators are indecisive at the current moment. If the Kava price breaks below $1, it might fall further.
Technical levels
Major support: $1 and $0.92
Major resistance: $1.20 and $1.55
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 pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
