KAITO Sees $3B Volume Decline as Bulls Try to Maintain Upward Trend

Key Takeaways

• KAITO’s volume has dropped from $3 billion to $580 million, indicating falling trading activity.
• However, the altcoin’s price has gained 7% in 24 hours as bulls appear to keep up the pressure.
• The RSI on the 2-hour chart shows rising bullish momentum and points to a possible new high.

KAITO, the governance token of the AI-powered project, launched on Feb. 20. By the next day, the trading volume climbed to $3 billion as interest in the cryptocurrency soared.

The rise in volume happened due to the KAITO airdrop, which was nearly 20% of its total supply. Initially, this development triggered selling pressure,  but the dust later settled.

Despite that, interest in KAITO has dropped based on the current volume value. Yet, it appears that the KAITO price rally is not over. Here is why.

Interest in KAITO Drops

On Feb. 21, KAITO’s price rallied to hit the $2 mark, making the altcoin one of the best-performing cryptos of last week.

Around the same period, the volume climbed to $3 billion. From a price perspective, rising volume alongside an increasing price is a bullish sign, strengthening the uptrend.

So, when the volume falls, it flashes a warning that the price might decline. As of this writing, KAITO’s trading volume has dropped below $580 million.

This decline contributed to the cryptocurrency’s recent pullback, which saw it decrease to $1.67. However, in the last 24 hours, KAITO’s price has increased by 7%, suggesting that the token demand has increased.

Should this price continue to increase, then the volume might also recover. If sustained, this could help the token recover, with a possible move back to $2.

KAITO Price Targets New All-Time High

An analysis of the 2-hour chart also agrees with this position. The chart shows that the Bull Bear Power (BBP) reading is positive.

The BBP compares the strength of bulls to that of bears. When the indicator flashes a green histogram bar, the bull has the upper hand, and the price can increase.

However, if the BBP is in the negative region, bears call the shots, and the price will likely fall. Since it is the former, KAITO’s price might rally above $1.70 in the short term.

Furthermore, the Relative Strength Index (RSI) has remained above the 50.00 neutral line, indicating bullish momentum around KAITO.

Should the RSI reading continue to rise, the KAITO’s price will likely climb to the 0.236 Fibonacci level. If validated, then the altcoin might trade at $2.

In addition, if the token continues to increase in demand, the price might rally to $2.25, marking a new high.

On the flip side, overhead resistance lies at $1.84. If KAITO fails to rise above this level and the volume continues to drop, this might not happen. In that case, the cryptocurrency’s value could sink to $1.42.