KAITO prices drop – Can whale buying prevent a fall below $0.60?

KAITO has been on a strong downtrend since facing rejection at $1.37 nearly two weeks ago. The bearish trend extended with the altcoin breaching the $0.7 support and dropping to $0.65.

At press time, KAITO was trading around $0.67, down 31% on the weekly charts. At the same time, the trading volume declined by 54%, falling to $40 million, with the market cap falling to $163 million, indicating reduced market activity and capital outflows.

KAITO whale continues to accumulate the dip

Although KAITO has been on a decline, one whale has taken the opportunity to buy the dip.

According to Arkham data, a whale bought 1.917 million KAITO worth $1.32 million from Coinbase. In total, the whale has purchased 2.815 million KAITO worth approximately $2.36 million.

When high-net-worth investors continue to accumulate despite the price drop, it indicates bullish sentiment. The whales expect the market to recover from this slip in the near term.

It appears that most market participants on the spot are feeling the same. In fact, after turning positive the previous day, the Spot Netflow fell into the negative zone again.

At press time, the altcoin’s Netflow was -$212k, indicating that more KAITO was pulled out of exchanges. 

Futures remain extremely bearish

On the Futures side, market sentiment is especially strongly bearish, with the market volatility remaining elevated.

Market players, including whales, are closing positions and exiting the market. According to dPro data, a whale closed his long position of 2.24 million KAITO, incurring a loss of $994,000.

The exit was low, reflecting a fear of liquidation as the market continued to plummet. Most of the traders in the futures market are fearful. 

Over the past 24 hours, KAITO recorded $107 million in Futures Outflows compared to $100 million in inflows. As a result, the Netflow fell to -$7.64 million, adding to its -$30 million recorded four days ago.

Such a sustained period of negative Netflows suggests that most traders were bearish and closed their positions. 

What’s next for KAITO?

Although traders on the spot are buying the dip, the sell pressure from the futures side seems to overpower them.

As a result, the market momentum strongly leans bearish, and a look at the Relative Strength Index (RSI) confirms this view. KAITO’s RSI has been on a sharp decline, falling from 81 to 37 at press time.

At these levels, the RSI indicates that the bearish pressure in the market is strong, with sellers dominating. Thus, if the selling pressure persists, KAITO is likely to drop further, losing the $0.6 support level.

However, a cooldown in the futures could give the spot buyers an opportunity to attempt trend reversal. For a reversal, KAITO needs to reclaim $0.96 and $1.

Final Summary

• A whale bought 1.917 million KAITO worth $1.32 million from Coinbase, raising total purchases to 2.815 million KAITO worth $2.36 million. 
• A  whale closed his long position of 2.24 million KAITO, incurring a loss of $994,000 as futures traders flip bearish.