The prevailing market momentum has posed challenges for cryptocurrency traders in their pursuit of profits. Notably, the once bullish layer-1 blockchain, Kava, has experienced a shift towards bearish sentiment as its token price plummeted below the immediate support level. This decline amounts to a significant drop of over 20% since the previous trading session.
The sudden drop in the value of the KAVA token, which had previously reached a 13-day high of $1.22, can be attributed primarily to the selling pressure observed in leading cryptocurrencies like Bitcoin, Ethereum, and BNB.
In the midst of the abrupt pullback, the bullish momentum for KAVA was unable to sustain the significant psychological level of $1.0. As a result, the price of the KAVA token currently stands at $0.945, reflecting a notable decline of 21% at the time of writing.
Based on CoinMarketCap data, there has been a substantial 38% decrease in trading volume overnight, with the reported volume amounting to $97.9 million. Furthermore, the Volume Oscillator indicator is indicating a shift back into the negative zone, suggesting the potential for a sideways to negative trend in the near future.
The price of KAVA is currently nearing its 50-day simple moving average, which could potentially serve as a support level for a brief period. However, below this zone, the 200-day simple moving average is an essential recovery area, and if the price falls below this level, buyers might encounter difficulties.
The RSI is currently stumbling around the halfway mark of 50, specifically at the 43 range, indicating negative sentiments prevailing in the market. Likewise, the MACD indicator is consistently heading towards entering the negative zone. If the MACD crosses into the negative region, it could act as a catalyst for a significant downward movement in price.
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