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KAVA Technical Analysis: Reversal Rally Attempts To Cover Bullish Failure 

cryptoknowmics.com 14 May 2022 11:07, UTC
Reading time: ~2 m

KAVA price action shows a bullish reversal with substantial lower price rejection from $1.35, resulting in a 30% rise. Will the uptrend reach $3? Key technical points:

  • The KAVA prices grew by 7.37% last day.
  • The crucial EMAs retake bearish alignment.
  • The 24-hour trading volume of KAVA is $141 Million, indicating a 125% hike. 

Past Performance of KAVA

On 28th April, KAVA price action shows a bullish failure to break above the rounding bottom breakout, as we mentioned in our previous analysis, with the neckline at $5.65. The defeat led to a 70% fall within a fortnight, reached the $1.35 support level, and influenced huge bearishness on the crucial EMAs.  However, the falling trend reverses abruptly as buyers take trend control at $1.35 and form a morning star pattern inflating market value by 30%. TradingView Chart Source-Tradingview

KAVA Technical Analysis 

With the buyers rewriting the KAVA/USD chart, the increase in trading volume reflects a boom in buying pressure. Hence, the possibility of floating market value above $3 increases. The sideways trend of the crucial daily EMAs develops a bearish alignment under the increased selling pressure displaying the start of a correction phase. Hence, the EMAs gain a bearish spread after the recent crossovers. The RSI slope challenges the 14-day average that has fueled the downtrend after exiting the oversold zone but leads into a sideways trend. Furthermore, the Stochastic RSI displays a new bull cycle in action as the K and D lines start to rise in the neutral territory. Therefore, the momentum indicators project a rise in underlying bullish momentum ready to fuel the uptrend. In short, the KAVA technical analysis displays a high possibility of an uptrend to $3.

Upcoming Trend

Presuming the uptrend undermines the higher price opposition with increased buying pressure, traders can expect the rally to reach $3. However, a failure to do so will result in a reversal back to the support level at $1.50 or even $1.35. Support Levels: $1.50 and $1.35 Resistance Levels: $2.50 and $3  

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