Kite [$KITE] is on the verge of clearing all recent losses amid a sector-wide rally. Since falling to a low of $0.09 and reclaiming $0.10, the altcoin has closed with higher highs.
As a result, it held the $0.11 support, breached $0.13 resistance, and climbed to $0.14 before retracing.
As of this writing, $KITE was trading around $0.13, up 8% on the daily charts. Over the same window, the trading volume jumped 106% to $44 million, indicating higher market activity.
Momentum to the upside holds firm
With the price hike, $KITE flipped the 20-day EMA. The flip suggests the likelihood of a sustained trend reversal, especially since the altcoin has been on a prolonged downtrend.
At the same time, its Normalized Smoothed MACD formed a bullish crossover and rose to -0.38.
However, the NSM remains within the negative zone, suggesting that the trend has yet to fully flip bullish. As such, while it has experienced a shift in demand-side activity, the sell-side activity is still extremely elevated.
Sentiment remains risk-off
Interestingly, although $KITE is showing upside momentum, sellers are still dominating the market. On the derivatives side, traders have shown no appetite for risk.
In fact, $KITE saw over 18.3 million in perpetuals sell volume compared to 15.7 million in buy volume. The net buying here remains negative at -11 million, with daily delta also negative at -3.4 million.
The situation suggests that more investors have aggressively exited their positions. The Futures outflow further confirmed this bearishness.
$KITE’s Futures saw $13 million in outflows compared to $12.8 million in inflows. The Futures netflow dropped 14% the past 24 hours to -$442k.
This has remained negative over the past days, a clear sign of aggressive exits. The same was also observed on the Spot side.
Can it hold the pressure?
Even as $KITE is rising, it still faces a major hurdle. Sellers are aggressive, and until profit-taking cools down, the trend is unlikely to hold.
If the pressure continues as it sits right now, $KITE could fall below $0.1312 and revisit $0.11 support. However, if bulls increase pressure while selling cools down, the altcoin will seek to flip $0.147 resistance, where the uptrend collapsed three weeks ago.
Final Summary
- $KITE cleared the $0.13 resistance and jumped to a monthly high of $0.14 to flip long-term moving averages.
- $KITE still faces strong bearish pressure as risk-off sentiment dominates the market.
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