KAVA Price Recovers Post Wintermute Sell-Off — Faces Test at $0.41

Key Takeaways

• The KAVA price fell below the $0.41 horizontal area.
• KAVA reached a low of $0.34 before bouncing.
• Can KAVA reclaim $0.41, or will it get rejected?
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On April 1, the KAVA price fell 22% in an hour, reportedly triggered by Wintermute selling a portion of its holdings. While the price has rebounded, it still needs to reclaim its lost support level.

Amid the volatility, KAVA announced new relating to developments in Kava AI , which could significantly improve decentralized lending. This benefits Kinetix, the AI-powered DeFi hub built on Kava.

With KAVA showing signs of recovery, the main question is whether the price can move above the $0.41 area or will be rejected and fall to new lows.

KAVA Price Breaks Down

The daily time frame analysis shows that KAVA broke down from the $0.41 horizontal support area on April 1.

The area had previously existed since the start of the year, so the breakdown from it is a decisive bearish sign.

KAVA fell to a low of $0.34 before bouncing significantly. The bounce validated an ascending support trend line (green icon) that had existed for 209 days.

Despite the bounce, KAVA trades below the $0.41 area. The $0.41 level will likely provide resistance from now on.

Technical indicators are bearish, supporting the possibility of a breakdown from the trend line.

The Relative Strength Index (RSI) and Moving Average Convergence/Divergence (MACD) fell below 50 and 0, respectively.

If a breakdown occurs, the next closest support will be $0.30.

New KAVA Lows Likely?

The daily time frame wave count gives a bearish KAVA price prediction, suggesting the downward movement will continue.

According to the count, KAVA completed a five-wave downward movement (red) starting in March 2024.

Then, it finished an upward A-B-C structure (green), which ended in December.

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The structures suggest the KAVA trend is bearish, and price bounces are corrective structures.

Following this pattern, the ongoing decrease starts a new downward movement, taking KAVA to new lows.

If the count is accurate, KAVA’s price will only bounce temporarily at the $0.30 horizontal area, while the following breakdown will take the coin to a new all-time low.

Alternatively, reclaiming the $0.41 horizontal area would be a show of strength that would put the bearish count at risk, but this currently seems unlikely.

Bearish Trend Ahead

KAVA showed impressive strength by recovering after its Wintermute-triggered April 1 sell-off.

However, the price faces the daunting task of reclaiming the $0.41 resistance.

Furthermore, indicator readings and the wave count are bearish, predicting another KAVA breakdown that leads to new lows.