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KAIA Surges 70% Monthly, But This Points to a Pullback Ahead
In a shocking turn of events, KAIA has skyrocketed by a staggering 70% in the last month. However, despite this impressive performance, our analysis suggests that a significant pullback is looming on the horizon.
Recent data reveals that the number of transactions has reached an all-time high, indicating a surge in demand for KAIA. This trend is further reinforced by the increasing use of KAIA in decentralized finance (DeFi) protocols, with the total value locked (TVL) rising by 7% to reach $41 million.
In addition, we have observed a significant increase in trading volume, which has resulted in a staggering 69% growth in just one month. This upward momentum is expected to continue as KAIA becomes an increasingly popular choice for facilitating transactions.
Despite these bullish indicators on the blockchain level, our examination of crypto exchange activity suggests that KAIA may be due for a sharp correction. Our analysis reveals that off-chain sentiment points to a price drop.
We have detected liquidity clusters below the current market price, indicating strong potential for the asset to retest its January 2023 low of $0.17. Furthermore, our analysis of open interest weighted funding rates indicates an overwhelming expectation of a significant decline in KAIA’s value by derivative traders.
As a result, it is essential to be cautious and consider hedging long positions or adjusting investment strategies accordingly to account for this potential pullback. It appears that the sharp upward momentum exhibited by KAIA may not last forever, and investors should be prepared for any eventuality.
Source: ambcrypto.com
