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.
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.
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.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Valdrin Tahiri is a cryptocurrency analyst and reporter at CCN, specializing in technical analysis with a focus on Elliott Wave theory, on-chain metrics, and fundamental research. He brings over seven years of experience in the crypto space as both a trader and writer.
He discovered cryptocurrencies in 2017 while earning his MSc in Financial Markets at the Barcelona School of Economics, which sparked a deep interest in blockchain and market dynamics. Since then, he’s contributed to top crypto outlets like BeInCrypto and CoinGape.
Valdrin also served as Community Manager of BeInCrypto’s Telegram group for three years, helping grow it into one of the largest crypto communities worldwide. His expertise in market structure and price patterns allows him to break down complex trends into clear, actionable insights.
He’s published thousands of articles covering altcoins, Bitcoin cycles, and macro trends.
