Kava.io (KAVA) is struggling to stay above the $3.00 support
Kava.io (KAVA) has breached a long-term pattern and is in danger of falling below the key horizontal support. This movement can determine the direction of the future trend.
Critical Support Zone
KAVA has been declining since hitting an all-time high of $9.21 on August 30th. On December 3, it broke below an ascending support line that has been forming since early 2021. After that, the price recovered and confirmed this line as resistance (red circle). on January 18th. Since then the token has been falling.
It is currently attempting to hold above the $3 support area. If the price falls below this zone, the next support will be $1.40. Therefore, it is important for KAVA to hold above this level to avoid a sharp sell-off.
Daily KAVA/USDT chart | Source: TradingView
There was significant bearish divergence (green line) in both the RSI and MACD before falling. Such divergences often herald a trend reversal to the downside, thus supporting a sustained decline.
If KAVA breaks the current support, the next supports are $2.20 and $1.60. These are the 0.786 and 0.85 Fib retracement support levels, respectively.
3-day KAVA/USDT chart | Source: TradingView
KAVA continues to decrease
The six-hour chart is showing a bearish outlook. Since December 3rd, KAVA has been holding above the $3.25 horizontal support area. More recently, the price confirmed this on January 18th, triggering a bounce in the process.
Since then, however, the token has dipped below this zone, supporting the possibility that the price will move further below.
KAVA/USDT 6 hour chart | Source: TradingView
Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.
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