Upbit listing propels KAIA to yearly highs, but is $0.10 the next price target?
A bullish breakout past $0.065 is possible, but swing traders need to be wary of a correction.
On Friday, 9th October, Kaia [KAIA] rallied by 63.96% from $0.0369 to $0.0605. The daily trading volume on the Binance spot pair against Tether spiked nearly 21-fold. At the time of writing, it was also reporting a 4,504% hike in daily trading volume.
The Open Interest on KAIA perpetuals surged by 431% in 24 hours, helping explain the CMC data. This intense bullish pressure and speculative FOMO came after news that KAIA crypto was listed on the South Korean exchange Upbit.
Listing news and short positions piling in to sell the news likely helped set off a short liquidation cascade. Additionally, the resulting price jump attracted even greater capital inflows.
How much higher can this impulse KAIA move go?
KAIA’s bullish move over the past month has been quite strong. It has already reached the $0.06 highs that served as resistance in February and May. And yet, this was also a threat to market bulls.
To shift the weekly structure bullishly, the $0.0969 swing high must be taken out. As things stand, this level is quite a way from the price, with a multi-month supply zone at $0.06 to overcome as well.
At press time, the weekly RSI and OBV were at yearly highs to signal steady upward momentum borne by demand. The CMF also recovered to reach positive territory, but was not yet above +0.05.
When the CMF pushes past +0.05 and KAIA’s price climbs above $0.06, it would be a good sign that the bulls can carry the move to the $0.10-psychological resistance.
Supply zone and overheated market conditions could force a correction
The $0.06 weekly supply zone has been challenged, and the bulls have been doing a good job driving prices higher. Since the move higher came after an exchange listing and short liquidations, there was a large FVR from $0.038-$0.051.
Therefore, a pullback down to $0.045 is a possibility. Such a drop would likely offer a buying opportunity, especially if the price reacts positively from this level.
A breakout past $0.065 would be a bullish continuation signal. Meanwhile, a drop below $0.04 would be a bearish sign.
Final Summary
- The Upbit exchange listing and short liquidations fueled a Kaia price move to February and May highs.
- A bullish breakout is possible but swing traders need to be wary of a correction towards $0.045 before a breakout.
