In the face of a generally tepid crypto market, KAVA has managed to defy the odds and kick off the week with a surge in positive momentum. While the broader crypto landscape experienced a decline, witnessing a 3.58% drop in market capitalization to reach $1.09 trillion, KAVA stood out by displaying an impressive 12.7% price increase. As a result, KAVA has rightfully claimed the spotlight, earning the prestigious title of the day’s foremost gainer.
The prevailing market downturn has brought attention to the legal dispute between the SEC and Binance, a prominent cryptocurrency exchange. The SEC has levied charges against Binance and its CEO Changpeng Zhao, accusing them of multiple violations of security laws.
As of the present moment, the trading value of KAVA against the USDT pair stands at approximately $1.10, reflecting a notable overnight gain of 12.7%. It is worth mentioning that KAVA has managed to outshine its peers in the market, even in the face of Bitcoin’s recent decline below a significant support level during the previous night.
Buyers Find Support on Higher Time Frame
When examining the weekly price chart, it becomes evident that the 20-week simple moving average played a pivotal role in propelling KAVA’s price, leading to a substantial 20% surge from $0.947 to $1.15. This development undoubtedly brought satisfaction to KAVA investors.
However, it is important to note that the current price range has historically functioned as a supply zone, posing potential challenges for bullish momentum moving forward. Thus, despite the recent gain, bulls may encounter obstacles as they navigate within this particular price range.
When observing the daily price movements of KAVA, a pattern of higher-lows formation becomes apparent in relation to the 50 and 100-day simple moving averages. Currently, the bulls are making efforts to sustain KAVA’s price above the 20-SMA, with the goal of propelling the altcoin toward the $1.55 range.
In terms of the bullish trend, the Relative Strength Index (RSI) is also poised to display a bullish crossover after rebounding from the midline (50 mark). At present, the RSI has reached a peak around the 58 range and shows potential for further upward movement.
Furthermore, the Moving Average Convergence Divergence (MACD) indicator remains in the positive region on the daily chart. The strong market focus on the SEC & Binance case has given KAVA an opportunity to rise. However, negative market sentiments might be causing some confusion among traders.
