Key Takeaways
- After reaching an all-time low of $0.67 in April, KAITO has surged over 200%, crossing $2.
- A golden cross between the 20 EMA and 50 EMA on the daily chart confirmed a bullish reversal.
- Data shows that 3.31 million KAITO bought between $1.76 and $1.82, creating solid support.
- Sustained momentum may lead KAITO to surpass its all-time high, potentially moving toward $3.
KAITO, the native token of the AI-driven decentralized network Kaito, has reclaimed the $2 mark for the first time since March 3.
The surge, fueled by a 150% rally in the past week, comes amid a broader altcoin rebound. As a result of this move, KAITO’s price is now 30% away from retesting its all-time high.
But can the momentum last? CCN breaks down what could come next.
KAITO Moves from Rock Bottom to Rally
KAITO’s price reached a new all-time low in April, dropping to $0.67. Since then, the altcoin has increased by over 200%, trading at $2.04 at press time.
On the daily chart, KAITO was able to stage this recovery due to the formation of a golden cross. For context, a golden cross occurs when a shorter Exponential Moving Average (EMA) rises above the longer one.
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This trend is typically bullish. As seen below, both the 20 EMA (blue) and 50 EMA (yellow) are below KAITO’s price, with the former also rising above the latter.
Adding to the breakout, KAITO also surged past the upper trendline of a falling wedge. A falling wedge is a bullish pattern that signals a potential trend reversal or continuation to the upside.
It forms when the price is consolidating between two downward trendlines converging, showing that the rate of decline is slowing down. From the chart below, the KAITO breakout validated after bulls defended the support at $0.69, and the altcoin broke the $1.04 resistance.
If this trend continues and the EMAs hold their positions, then KAITO’s price might rise higher.
Support Strong
Another indicator supporting the extended uptrend is the In/Out of Money Around Price (IOMAP). The IOMAP shows support and resistance by tracking the volume of tokens in unrealized profits or losses.
The higher the volume of tokens in unrealized profits, the stronger the support. On the other hand, a higher volume of losses indicates resistance.
Based on IntoTheBlock’s data, the significant support for KAITO sits between $1.76 and $1.82. At this price level, 675 addresses accumulated about. 3.31 million KAITO.
This volume is higher than those purchased between $2.07. and $2.38. As such, KAITO’s price could break through current resistance and, if confirmed, potentially set a new all-time high soon.
KAITO Price Analysis: $3 Next?
Concerning the short-term outlook, CCN observed that the Relative Strength Index (RSI) reading has increased. This increase indicates rising bullish momentum around KAITO.
Amid this rise, the cryptocurrency is likely to breach the upper-level resistance at the 0.382 Fibonacci level, which is also positioned at the peak of the latest green candlestick.
If this trend continues, KAITO’s price might break through $2.45. If successful, itcould hit a new all-time high of $3.
However, if bears take over and selling pressure increases, the altcoin’s market value might decline to the underlying support at $1.57.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
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