Despite recent gains, a pullback in prices is possible. A weaker start of U.S equities hints at risk-averse market sentiments
Kava price analysis suggests a bullish outlook for the day. The bulls are in a commanding position since the start of the fresh trading week. However, the activity of buyers and sellers indicates a tug of war in today’s price action with the formation of a probable “Spinning top”. Even, if it’s formed it will hold less importance as the price is still not reached the overstretched condition.
As of writing, KAVA/USD is reading at $0.9277 with a gain of 4.50% for the day.
From a technical perspective, the hourly chart of the price has set the interim resistance level at $.0.96. At the moment, the price is trading under the influence of sellers and is expected to retrace further. A negative divergence can be seen on the hourly Relative Strength Index (RSI) momentum indicator.
A drop toward 0.23% Fibonacci retracement at $0.90 can not be ruled out. However, another momentum oscillator the Moving Average Convergence Divergence (MACD) still holds above the midline but with receding bullish momentum.
On the daily time frame, the price has been trading above the 50-day Exponential Moving Average (EMA) for the first time since August 17. A daily close above the session’s high would consolidate the recent bullish momentum.
On moving higher, the buyers will aim to take out the horizontal resistance zone placed around $1.20.
Whereas, the downside is capped near the low of the previous session at $0.81. A break below this level would open the gate for lower levels.
Technical indicators:
RSI: The daily RSI holds in the overbought zone.
MACD: The momentum oscillator trades above the central line with bullish momentum.
Conclusion: In the shorter-time frame a pullback is visible that could be capitalized for a discount buying opportunity.
