KAVA Token Plummets, Losing Over 20% in Correction

KAVA token price has experienced a retracement, breaking the $1.2 mark amid persistent bearish pressure. The double top pattern on charts indicates a trend reversal, and the token has breached $1, signaling potential correction. The 100-day EMA retest highlights bearish cues, leading to a loss of over 20% gains this week. At press time, KAVA trades at $0.9117, with a 2.61% intraday decline.

KAVA Token Price Undergoes Retracement, Breaching $1 Mark

October 11, 2023

New York, NY - The price of the KAVA token has experienced a significant retracement, breaching the $1 mark and signaling a potential correction. This reversal comes after the token formed a double top pattern on the charts, indicating a bearish trend.

Bearish Sentiment Drives Price Decline

Bears have persisted in pushing the token's price lower from its recent highs. The KAVA token has retested the 100-day Exponential Moving Average (EMA) mark, further highlighting the bears' dominance. This price action suggests a trend reversal, with the token losing over 20% of its gains this week.

At the time of writing, the KAVA token was trading at $0.9117, representing an intraday drop of 2.61%. The token has a negative monthly return ratio of -6.90% and a yearly return ratio of 5.25%. The KAVA/BTC pair is currently valued at 0.0000138 BTC, with a market capitalization of $64.10 million.

Analysts Anticipate Further Retracement

Analysts maintain a neutral outlook on the KAVA token, suggesting that it could face further retracement and potentially slip below the 200-day EMA mark soon. This bearish sentiment stems from the token's recent price decline and the indications of selling pressure on the charts.

Price to Volume Profile Indicates Profit Booking

According to data from Santiment, the KAVA price to volume metric has displayed selling pressure on the charts. Despite the recent market surge, the token has failed to participate and has consolidated within a narrow range.

Volatility and Sentiment Outlook

Following the price decline, sharp volatility has been witnessed, indicating pump and dump movements. The price volatility value has declined by over 32% in the previous session, while the total weighted sentiment has remained close to the midline at around -0.514.

Social Dominance and X Follower Data

The social dominance data for KAVA remained average this week, indicating minimal fluctuations. The value stayed near 0.036%, suggesting a neutral outlook. Similarly, the X followers witnessed a rise to the $2 mark.

Development Activity and Open Interest Analysis

Amidst the price decline, development activity remained steady, hovering around 16.79. However, derivative data noted long unwinding activity, with the open interest declining by 2.78% to $17.21 million in the previous 24 hours.

Technical Analysis

Based on Fibonacci levels, the KAVA price has slipped below the 38.2% zone and is trading beneath the mid Bollinger Band support level. The RSI curve has dragged below the midline, signaling a negative crossover on the chart. The MACD indicator also shows a bearish crossover and red bars on the histogram.

Total Supply and Market Position

The total supply of the KAVA token is 140.32 million, while the volume-to-market cap ratio stands at 0.512. The token's market capitalization ranks 487th in the global crypto market.

Conclusion

The KAVA token's price has taken a downward turn, breaching the 100-day EMA zone and experiencing selling pressure. Analysts predict the token may extend its decline and potentially retest the 200-day EMA. Technical indicators further support this selloff, suggesting the possibility of a slide towards the demand zone of $0.8800 in the near future.