Key Takeaways
- The KAITO price trades 25% below its all-time high.
- KAITO has nearly reached the $2.40 resistance area.
- Can KAITO’s price break out and move to new highs?
KAITO hit its all-time high of $2.92 just days after launching on February 27, only to tumble nearly 80% to a low of $0.67 by mid-April.
However, since that bottom, the token has steadily recovered, climbing toward its previous peak.
Now the big question is: Can KAITO sustain this momentum and break into new highs, or is there a correction around the corner? Let’s take a closer look.
KAITO Nears All-Time High
The daily time frame analysis shows that the KAITO price has increased rapidly since breaking from a descending resistance trend line on April 17.
The price created a higher low in May and started a parabolic upward movement that culminated with a high of $2.39 on May 27.
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KAITO has nearly reached the final resistance at $2.40 and trades only 25% below its all-time high price of $2.92.
However, while the price has created numerous higher lows, technical indicators show weakness.
The Relative Strength Index (RSI) and Moving Average Convergence/Divergence (MACD) have generated bearish divergences.
Such divergences often occur at the top of upward movements, leading to corrections.
The daily time frame suggests KAITO could be close to a local top, and a retracement toward the $1.80 support could follow.
KAITO Correction Ahead
The wave count aligns with the possibility of a KAITO correction, showing that the price is nearing the top of its increase.
The wave count suggests KATIO is in its upward movement’s fifth and final wave.
Wave five is developing into an ending diagonal, as evidenced by its wedge shape.
If the count is accurate, the KAITO price could complete another short-term high (black) before completing its increase.
Afterward, KAITO could correct toward $1.83 and $1.61.
So, while the long-term KAITO trend is bullish, the price may correct in the short term before eventually resuming its increase.
Rally Losing Steam
The KAITO price increased parabolically at the start of May and more gradually since May 11.
While KAITO is only 25% below its all-time high, signs of weakness are developing.
The price may have completed a five-wave upward movement and could correct before moving to new highs.
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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