KAVA Technical Analysis: Buyers Need To Hold $1.66 Once Again  

Key technical points:

Past Performance of KAVA

KAVA prices showcased a dramatic V-shaped reversal from the $1.66 mark last month, but they failed to surpass the $3 mark. The bullish failure led to a retracement at $2.25, which led to $1.66 as the global markets took a nosedive. However, the buyers once again manage to halt the falling trend above the $1.50 and keep the closing price floating above $1.66.

Source- Tradingview

KAVA Technical Analysis

The lower price rejection at the $1.50 mark drives the KAVA prices higher and forms a morning star pattern. However, the recent daily candle shows a bearish influence, cutting 3.50% of market value and eyes to undermine the reversal pattern. The daily-RSI slope shows a reversal from the oversold zone but takes a step back as the daily candle takes a bearish influence. However, the bullish divergence is present in the last two dips at the $1.66 teases a potential reversal to surpass the $2 mark.

The MACD indicator displays the fast and slow lines maintaining a falling trend after the recent bearish crossover. However, the decreasing intensity of the negative histograms reflects a weakness in the underlying bearishness. The indicators display a bullish reversal possibility, but the RSI surpassing the 14-day SMA and the bullish crossover in the MACD indicator is essential. In a nutshell, the KAVA technical analysis suggests the traders to wait till the price action confirmation to avoid a bearish trap.

Upcoming Trend

KAVA prices will likely hit the overhead resistance at $2 if the buying pressure spikes over the day. However, the fallout of $1.66 leading to a candle closing below $1.50 will depreciate market value by 15% to test $1.30.

Resistance Levels: $2 and $2.25

Support Levels: $1.50 and $1.30