- Yesterday, the Kava crypto price fell 20% in just a few hours.
- A bullish crossover was generated between the 20 and 200-Day moving averages indicating bullish momentum.
Kava (KAVA) price has extended to the last swing high by gaining 31% in a month and is facing resistance from the $1 mark. The price dropped by approximately 20% yesterday but buyers participated and converted this fall into the pullback. The price has taken support on the 200-Day moving average and heading for the resistance level of $1.
At the beginning of 2024, the KAVA token price tried to sustain the $1 mark but sellers dominated and dragged down the price by 28% in a week. Now, the same scenario has been created but buyers are also there and trying to convert this fall into a pullback.
At the time of writing, the Kava price is trading at $0.92 with an intraday gain of 3.96%. The market capitalization is $1.00 Billion and according to the market cap, it ranks 97th in the cryptocurrency market. The 24-hour trading volume of KAVA is $58.37 Million.
Technical Analysis of KAVA Crypto Price on Daily Timeframe
On the daily time frame, the Kave crypto price has surged by 40% in a month and reached the last swing high. The price has been dumped for a short period due to the profit booking but buyers have shown their faith in the dip and leading the gains.
If the buyers lift the price over the $1 mark and sustain then the Kava price may extend to the resistance level of $1.20. According to the price action, if the Kava token price reaches the $1.20 level then profit booking in the long term can be expected. Because it is a good supply zone, the investors may prefer to book profits which may lead to a rapid fall.
Alternatively, if the Kava crypto price faces resistance from the $1 mark and falls below $0.85, then it may easily melt to the support level of $0.700. But, if the price fails to defend the $0.700 level, then a sharp fall to an all-time low is expected.
Will KAVA Price Melt to the 200-Day Moving Average in a Few Days?
In a 4-H time frame, the Kava token price has witnessed a sharp fall in the last few hours and recently it is up by 10% to gain liquidity. According to the technical chart, the price has failed to sustain the $0.95 mark.
If the current candlestick closes below the $0.90 level then it may drop to the 200-Day moving average in a few days. RSI is at 63 which is rapidly falling from the overbought zone indicating the selling pressure.
Conclusion
Based on the technical analysis, it seems that the KAVA crypto price is facing resistance from the $1 mark. However, buyers are currently participating and trying to convert the fall into a pullback. If the buyers manage to lift the price over the $1 mark and sustain, then the price may extend to the resistance level of $1.20. On the other hand, if the price falls below $0.85, it may easily melt to the support level of $0.700.
Technical Levels
Resistance: $1.00 & $1.20
Support: $0.850 & $0.740
Disclaimer
This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.