KAITO Price Breaks Above $1 as Trading Volume Explodes Across Exchanges

Key Takeaways

• KAITO broke out from a descending resistance trend line.
• The price trades inside the $1.20 horizontal resistance.
• Can KAITO break out and accelerate its rally in May?

KAITO has rallied nearly 50% in the past two days, becoming one of the best performers in the crypto market.

Some positive news, such as improvements in the Kaito Dune dashboard and the introduction of the Yapper Leaderboard , preceded the rally.

With the price trading at a vital resistance level created by the launch-day open, let’s examine the charts and see if a breakout is likely.

KAITO Breaks Out With Volume

The KAITO price fell under a descending resistance trend line after its all-time high of $2.92 on Feb. 27.

After losing 75% of its value, the price regained footing and broke from the trend line on April 17.

The breakout created a higher low on May 4 and a higher high on May 9, the first steps to creating a bullish structure.

During the breakout, KAITO’s volume also surged to the highest in 30 days, breaking a downward trend since March.

Technical indicators legitimize the breakout and suggest it will continue.

The Relative Strength Index (RSI) is above 50, while the Moving Average Convergence/Divergence (MACD) is positive.

Today, the KAITO price trades inside the $1.20 horizontal resistance area. A successful breakout can take the token to the Fibonacci and horizontal resistance at $1.80.

Will KAITO Break Out?

The daily time frame analysis gives a bullish KAITO price prediction for several reasons.

The first one is the breakout from an ascending parallel channel. Such channels usually contain corrections, so KAITO’s breakout indicates an impulsive movement.

The second is the wave count. It is unclear whether the price increase is a five-wave upward movement or an A-B-C structure, but neither seems complete.

The sub-wave count (black) shows that the increase is missing the fifth and final wave to the upside, which will complete either wave C or 3 (green).

The only worrying sign is the local high and upper wick (red icon), where waves A and C have the same length.

However, because of the breakout and sub-wave count, KAITO will likely break out above this region and reach the 1.61 extension at $1.40.

KAITO to $1.40

The price of KAITO rallied in the past three days, reaching a high of $1.21.

While the price struggled once it reached the $1.20 resistance area, the technical analysis suggests it will break out.

If KAITO closes above $1.20, the following targets will be $1.40 and $1.80, respectively.