KAVA Technical Analysis: KAVA Recovery Struggles To Surpass $3

Key technical points:

Past Performance of KAVA

On April 29th, a failed attempt from KAVA buyers to surpass the previous swing high of $5.6 triggered a significant correction. The V-top reversal brought the altcoin to a $4 psychological level, but the border negative sentiment in the market bolstered support breakdown. The intense sell-off plunged the coin price to a low of $1.4, registering a 75% concerning the $5.6 high.

Source- Tradingview

KAVA Technical Analysis

The heavy discount on KAVA price caused an immediate reversal from the $1.43 mark and surged it 110% higher to $3. However, for the past three weeks, the altcoin is struggling to breach this resistance, resulting in a short consolidation. The 20-and-50-day EMA offers constant resistance to market price assist sellers to prevent a bullish breakout from $3. Moreover, the 100-and-200-day EMA moving just above it bolsters the same cause.

However, a constant rise in MACD and signal line indicates growth in underlying bullishness. Thus, with the increasing buying pressure, the altcoin should reattempt to surpass the overhead resistances. Amid the recent recovery, the daily-RSI(46%) slope surged higher and reclaimed the 14-SMA indicating an improvement in trader’s sentiment. However, the breakout above the equilibrium(50%) would offer a better confirmation. In a nutshell, the KAVA technical analysis suggests a continuation of ongoing consolidation for a few more sessions.

Upcoming Trend

The ongoing consolidation in KAVA price reflects uncertainty in market participants and simultaneously an excellent trading set-up. Thus, if the buyers breach the $3 resistance, the resulting rally could pump 35% higher to the $4 mark. However, on the flip side, losing range support of $2.26 would dump the coin back to the $1.4 mark.

Resistance Levels: $3 and $4

Support Levels: $2.26 and $1.4