The recent uptrend in Kaia’s [KAIA] value has been remarkable, witnessing a significant 101% surge within the span of just a week. This uptrend is a continuation of a rally that commenced about a month ago, resulting in an overall gain of 197.6%—a performance that is only matched by a few digital assets in the market.
This surge has caught the attention of a multitude of enthusiastic buyers, propelling the price even higher and presenting a lucrative opportunity for potential investors.
Spike in Collective Interest towards KAIA
The interest in KAIA has seen a sharp rise, positioning it as the fourth top gainer on CoinMarketCap following a remarkable 35.05% increase in price. This surge was accompanied by a substantial 281.63% uptick in trading volume, as indicated by Coinglass, with active traders swiftly maneuvering in the market.
This elevated interest has significantly influenced KAIA’s market performance, with the token’s market capitalization—representing its total valuation—increasing by 36.27% to reach $2.25 billion.
Simultaneously, KAIA’s Total Value Locked (TVL), a crucial metric reflecting investor engagement within the blockchain network, climbed to $128.49 million.
This peak level, matching the last observed in December 2023, signifies the escalating confidence and dedication of investors towards the platform’s growth trajectory.
If this momentum endures, there is a high likelihood of further price gains for KAIA as market interest continues to intensify.
Cautionary Signal: Potential Price Decline
There is a looming possibility of a price downturn for KAIA as it operates within an ascending triangle pattern. This pattern, characterized by price oscillations confined between an ascending resistance and support line, often culminates in a breakdown and substantial decline once the support line is breached.
In the event of this scenario playing out, the price of KAIA could retract towards the channel’s base. While a bounce-back at $0.3670 could provide transient relief, failure to sustain this level may trigger a descent towards two lower thresholds: $0.2837, and if there is no reversal, $0.2475.
Additional declines might ensue, contingent on the prevailing on-chain sentiment.
Nevertheless, despite these potential risks, CryptoCrypto emphasizes that the current on-chain sentiment remains positive, which could uphold the price and potentially propel it further upwards.
Continued Bullish Momentum Driven by On-Chain Activity
As of the latest data, Coinglass has reported a bullish market sentiment surrounding KAIA, with its Open Interest (OI) soaring by 107% to hit $35.15 million.
An upsurge in OI typically signals market confidence, indicating that bullish traders are prevailing by initiating or retaining long positions. This showcases optimism regarding KAIA’s price trajectory and reinforces the dominating bullish sentiment.
Furthermore, the Funding Rate has exhibited positivity at 0.00254%. This suggests that long traders are incurring costs to maintain equilibrium between the perpetual and spot markets, thereby contributing to price stability.
If these trends persist, the price of KAIA is poised to uphold its upward momentum, fueling the ongoing surge further.