In this new Wednesday crypto nugget, we are going to focus on an asset that we have not had the opportunity to mention, the KAVA. Native cryptocurrency of the blockchain that bears the same name, it is a network that was developed with the Cosmos SDK. After a nice bullish push at the start of 2023, the price turns red. But for all that, will this situation continue for several months? This is what we will try to answer in this Wednesday analysis. Without further ado, let’s head over to the charts!
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A rather complex situation on a weekly scale
On the weekly scale, it is clear that the course was in theinability to regain pivot area on which it has reacted on several occasions since 2020. Having been rejected two weeks in a row during the second half of January, KAVA opted for a resumption of the bearish momentum and now stands on a technical level (a former support) at $0.75-0.77.
This week is important with the speeches Powell had the opportunity to give yesterday and the one he will give today. This will partly determine the path the courses will take. If Bitcoin and Ether go down, KAVA will fall without a doubt. Currently, KAVA needs to hold above $0.75. A passage of the course below this level will be an invalidation for the buyers and will cause the asset to fall durably towards its low point at 0.51 dollar.
For the moment, it is necessary to monitor the reaction of the price on the current support. If KAVA is able to hold, it will demonstrate some buying interest in the asset, which could cause it to sideways between $0.77 and the pivot zone at $1.147.
Multiple levels to monitor on the KAVA
On this smaller timescale, using the volume profile, we can determine the levels to monitor over the next few days. It is clear that, in addition to the pivot zone, the price reacted on numerous occasions on the Point Of Control which is located at $0.912. This is the level to watch on a daily scale, since a recovery from this technical level will open the way to a return to $1.01 (red resistance zone) and, in a second step, to the pivot zone.
However, the daily trend is bullish and the price keeps breaking down from technical levels. Thus, before the pivot zone, the KAVA will have to resume the 0.85 dollar. If it does not succeed, such a weak rebound will be a sign of superiority for sellers and will not be a good sign for buyers.
Moreover, you can see that the price has rebounded on the gray area that we had identified in the first part of the analysis. A break below this level will be a rather clear sign of the bearish momentum the asset is experiencing on a daily basis. In addition to the low point that was recorded on January 2, we can monitor a first technical levela VALwhich is located at $0.66. This is the current objective in the event of a drop below 0.75 dollars.
Here we are at the end of the technical analysis of the KAVA cryptocurrency. Although a rebound has begun on a weekly basis, the rejection on the pivot is rather clear. This is without counting the daily trend which is clearly bearish. As a result, as long as the POC is not regained on the asset, the bias to have is rather bearish. And, until proven otherwise, the asset will likely fetch $0.66.
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