KAIA Price Fails to Sustain Breakout — Risks Falling to New All-Time Low

Key Takeaways

• KAIA failed to sustain a breakout from a resistance trend line.
• The KAIA price trades inside the final horizontal support area.
• Can KAIA bounce, or will it break down to new all-time lows?

The KAIA price broke out from a long-term resistance in November 2024, sparking optimism that it had ended its correction.

However, the hope faded after the price failed to close above the main resistance at $0.320, triggering a 70% decline that has extended well into 2025.

With KAIA barely holding on to the final horizontal support before a new all-time low, the main question is: Can the price prevent a breakdown with a bounce, or is it bound to fall to new lows? Let’s look at the charts and find out.

KAIA’s Failed Breakout

The weekly time frame chart shows that KAIA broke out from a long-term descending resistance trend line in November 2024. The trend line had existed for nearly four years, so the breakout from it created the expectation that KAIA had started a long-term upward movement.

However, this was not the case. Rather, the KAIA price failed to close above the $0.320 horizontal resistance area despite reaching a high of $0.423. The rejection created a long upper wick (black icon) that confirmed the area as resistance.

The KAIA price has fallen since and decreased under the trend line in February 2025. It currently trades just above the $0.120 horizontal support area, the final one before an all-time low.

*Note: The Klaytn chart is used instead of KAIA because of the availability of more price history.

Technical indicators are bearish. The Relative Strength Index (RSI) declined below 50 while the Moving Average Convergence/Divergence (MACD) fell below 0.

So, the weekly time frame gives a bearish KAIA prediction, suggesting that a breakdown and a new all-time low are likely.

Possible KAIA Bounce?

While the weekly time frame chart is decisively bearish, the daily one offers hope for a bounce because the daily RSI and MACD have generated bullish divergences (orange), often leading to breakouts.

This temporary trend reversal will be confirmed if KAIA breaks out from its short-term descending resistance trend line. If that happens, the price can increase to the 0.5 Fibonacci and horizontal resistance at $0.265.

Despite the likelihood of a breakout, the long-term count suggests the trend is bearish. According to the count, KAIA has completed a five-wave downward movement since 2021. Following that, it completed a W-X-Y corrective structure.

So, the decline in 2025 is likely the beginning of the next part of the downward movement. If that is the case, the KAIA price will eventually break down below $0.120, as is likely according to the price action.

Therefore, the proposed breakout will likely cause a lower high toward the middle of the range before the downward trend resumes to new lows.

Bearish KAIA Price Trend

The KAIA price failed to sustain a breakout from a long-term descending resistance trend line.

This confirmed long-term horizontal resistance at $0.320, which also acted as the range high. While a short-term breakout is likely, the long-term KAIA trend remains bearish.