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In a rally, Kaia (KAIA) has emerged as the top gainer in the cryptocurrency market, soaring by over 60% within 24 hours to reach $0.4081. This surge comes alongside a 293.17% spike in trading volume, now totalling $574.76 million, while its market capitalization climbed to $2.40 billion.
The token’s breakout follows weeks of trading within a narrow consolidation range between $0.1638 and $0.1115. After breaking this range, KAIA entered a strong bullish streak, posting a 281% price increase over the past five weeks.
Market observers now have their eyes set on the $0.50 price level, which the cryptocurrency might hit this week if the bullish sentiment holds. This performance has drawn mixed reactions from market analysts, with Altcoin Sherpa remarking in an X post, “Some of these new coins are bizarre. $KAIA wtf is this thing?”
KAIA Signals Overbought Conditions
Despite its rally, technical indicators suggest caution. On the 4-hour chart, the Relative Strength Index is overbought at 86.89, hinting at a possible near-term correction. Such high RSI levels indicate extreme buying activity, which may not be sustainable over the long term. Similarly, the Directional Movement Index shows early signs of waning bullish momentum.
The +DI line, currently at 44.8821, converges toward the -DI line at 0.8372. However, the gap between the two remains wide enough to suggest that the bullish trend is intact. The Average Directional Index, standing at 67.93, further confirms the current trend’s strength, even if a slowdown in momentum is visible.
Price Prediction: Can KAIA Reach $0.50?
After peaking at $0.4250 earlier today, the KAIA token has found support near the 78.6% Fibonacci retracement level at $0.3684. This threshold is a key technical zone and could serve as a springboard for the cryptocurrency to aim for its next milestone of $0.50. However, for this move to materialize, the token must close above the $0.4218 resistance on the daily chart, accompanied by continued high trading volume.
Conversely, if the 78.6% tier fails, KAIA may retest the 61.8% Fibonacci retracement level at $0.3265 before attempting another upward push. A breakdown below this area could expose the token to a deeper correction, likely targeting the 50% Fibonacci level at $0.2971. A breach of this level would invalidate the bullish outlook and lead to further downside toward $0.2676.