Kava remains under correction, although it has shown signs of strength today due to the latest surge in volatility. This could lead to a major trend shift, but the crypto will likely face resistance anytime soon.
Unlike most mid-cap altcoins, Kava recorded less loss during the wide market correction and remained well above the $0.38 level throughout the storm. Though this price marked the crypto’s lowest level in the last four months after losing roughly half of its valuation.
However, things might get worse for the crypto in the future as it forms a strong bearish pattern on a short-term scale. While it continues to hold the above price level as support, it has created a series of lower highs on the daily chart. It attempts to create a new one following the latest surge.
No doubt, it will likely face rejection at the descending trendline, acting as dynamic resistance for the past four months. Once that happens, we can expect a drop capable of slipping the price back to the mentioned price level, serving as crucial parallel support since the correction began.
Inversely, a successful cross above this descending trendline could bring a temporal shift in the trend. It must reclaim last December’s high before confirming a major shift. But as it stands, Kava remains under the bear’s radar despite the latest surge. A drop off the parallel support could cause a catastrophic loss in the future.
KAVA’s Key Levels To Watch
Source: Tradingview
Following the latest surge, Kava is targeting the resistance line at $0.51. There is lots of resistance above in case of a break, but close ones to watch are $0.556 and $0.624. Above it lies $0.68.
Right now, the $0.446 level is providing support, along with the recent lowest $0.38 level. Losing it could cause a serious collapse to $0.32.
Key Resistance Levels: $0.566, $0.624, $0.68
Key Support Levels: $0.446, $0.38, $0.32
- Spot Price: $0.47
- Trend: Bearish
- Volatility: High
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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