KAITO Rally Stalls After 12% Rejection, Marking a Likely End to Its Uptrend

Key Takeaways

• KAITO shows signs of post-impulse correction forming.
• $2.05 is likely the wave (V) top.
• Correction targets lie near $1.52–$1.44.

KAITO has experienced a parabolic 200% rally, gaining significant momentum after breaking its long-term downtrend.

Higher and lower time-frame charts show signs of exhaustion, hinting that a corrective wave may form before the next leg is higher.

Its recent decline and price divergence hint at a possible downturn.

KAITO Price Analysis

The 4-hour chart of KAITO shows a clean five-wave impulsive move from the $0.66 low in April to a local top at $2.10 on May 13.

This rally broke through the prior resistance zone and completed a macro reversal from the long corrective decline that started in February.

The move was characterized by a higher low, a parabolic move, and a clear five-wave structure, which led to a May high.

However, the Relative Strength Index (RSI) has formed lower highs since the May 8 high, showing bearish divergence.

The wave count suggests that KAITO completed its larger degree wave (V) at $2.10, which aligns with the 0.618 Fib retracement of the prior range.

This confluence makes it a strong candidate for a local top.

Support lies at the $1.79–$1.70 region, representing 0.5 of the entire decline from the $3 all-time high to the low.

A deeper correction could extend toward $1.54 or even $1.44 if KAITO enters a larger corrective stage.

The long-term trend remains bullish, and this corrective phase can serve as a healthy reset before another wave higher.

KAITO Price Prediction

In the 1-hour timeframe, KAITO has shown a breakdown from the ascending channel since May 9.

It appears to be forming a textbook ABC correction following the five-wave completion around $2.10.

Wave A dropped sharply to around $1.78, followed by a corrective bounce to the $1.96 region, forming wave B.

The next wave C is expected to follow downward with a target near $1.52–$1.44.

This aligns with Elliott Wave expectations, where a B wave often forms a complex or sideways structure before the final C leg resolves directionally.

The RSI has failed to make new highs, supporting the idea of waning momentum and favoring the downside.

In the short term, we expect a push lower toward $1.70 first, acting as the 1.0 extension of the ABC move.

If that breaks, more aggressive downside targets include $1.54 (1.618 extension), aligning with the 0.382 Fib retracement, where price could find a strong bounce and resume a bullish trajectory.

If bulls regain strength early and reclaim $2.05, the correction would be invalidated, and continuation toward $2.44 and possibly $2.92 could follow, aligning with higher Fibonacci extensions.

Traders should watch for bullish divergence on lower timeframes or reversal structures (double bottom, wedge breakout) near $1.52–$1.44 for potential entries.

Key Levels to Watch

• Immediate Resistance: $1.95 (wave B top).
• Invalidation of Correction: $2.10.
• Wave A Support: $1.78.
• Main Correction Target: $1.54–$1.44.
• Major Structural Support: $1.20.