• 24 June, 2024
Market News

Kava Price Analysis: Is Upside Sustainable in KAVA? Know Here

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. 

Source: Trading view

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.

Source: Trading view

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.

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