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$KAITO has recently experienced a slight drop from its all-time high ($ATH) of $2.92, which it reached just two days ago. The altcoin is now attempting to reclaim that peak, but the broader market cues are exerting downward pressure.
$KAITO’s recovery depends heavily on Bitcoin’s performance, with both coins showing an increasing correlation in price movements.
$KAITO Needs Support
$KAITO’s correlation with Bitcoin has been rising, suggesting that it closely follows Bitcoin’s market trends. This uptick in correlation indicates that $KAITO’s price movement is becoming more aligned with BTC’s actions.
As Bitcoin recovers from its intra-day low of $78,250, reaching a trading price of $84,719, the broader market sentiment could shift. If Bitcoin continues its upward trajectory, $KAITO’s price could follow suit, assuming the correlation strengthens further.
However, despite this potential for upward momentum, traders are still skeptical. The negative funding rate of $KAITO, which has increased over the past 24 hours, reveals that many are betting against the altcoin.
Short contracts have dominated over long contracts, showing the traders’ reluctance to fully back $KAITO’s recovery at this moment. The mixed signals from market sentiment point to a level of uncertainty that could stall $KAITO’s price movement in the short term.
$KAITO Price Attempts Recovery
$KAITO’s price is currently sitting at $2.22, just below the resistance level of $2.26. While the broader market conditions seem favorable for a potential recovery, traders’ sentiment remains cautious.
$KAITO is attempting to breach this resistance, but if the negative funding rate continues, it may struggle to secure further gains.
Given the mixed signals, $KAITO may continue to trade within a range between $1.86 and $2.44 in the near term. This consolidation suggests that the altcoin could remain trapped under $2.44, a critical resistance level.
A successful breach of $2.44 would indicate the possibility of a rally, with the potential for $KAITO to break its $ATH of $2.92 and reach above $3.00.
A failure to break the $2.44 resistance level could result in $KAITO consolidating under this price point, with the altcoin remaining stuck within the same range. A breach of $1.86 would further invalidate the bullish outlook, signaling a possible continuation of the downtrend.