KITE hits a monthly high of $0.14 – Now it faces a critical test

Kite [KITE] is on the verge of clearing all recent losses amid a sector-wide rally. Since falling to a low of $0.09 and reclaiming $0.10, the altcoin has closed with higher highs. 

As a result, it held the $0.11 support, breached $0.13 resistance, and climbed to $0.14 before retracing.

As of this writing, KITE was trading around $0.13, up 8% on the daily charts. Over the same window, the trading volume jumped 106% to $44 million, indicating higher market activity.

Momentum to the upside holds firm

With the price hike, KITE flipped the 20-day EMA. The flip suggests the likelihood of a sustained trend reversal, especially since the altcoin has been on a prolonged downtrend.

At the same time, its Normalized Smoothed MACD formed a bullish crossover and rose to -0.38.

However, the NSM remains within the negative zone, suggesting that the trend has yet to fully flip bullish. As such, while it has experienced a shift in demand-side activity, the sell-side activity is still extremely elevated.

Sentiment remains risk-off

Interestingly, although KITE is showing upside momentum, sellers are still dominating the market. On the derivatives side, traders have shown no appetite for risk. 

In fact, KITE saw over 18.3 million in perpetuals sell volume compared to 15.7 million in buy volume. The net buying here remains negative at -11 million, with daily delta also negative at -3.4 million.

The situation suggests that more investors have aggressively exited their positions. The Futures outflow further confirmed this bearishness.

KITE’s Futures saw $13 million in outflows compared to $12.8 million in inflows. The Futures netflow dropped 14% the past 24 hours to -$442k.

This has remained negative over the past days, a clear sign of aggressive exits. The same was also observed on the Spot side.

Can it hold the pressure?

Even as KITE is rising, it still faces a major hurdle. Sellers are aggressive, and until profit-taking cools down, the trend is unlikely to hold. 

If the pressure continues as it sits right now, KITE could fall below $0.1312 and revisit $0.11 support. However, if bulls increase pressure while selling cools down, the altcoin will seek to flip $0.147 resistance, where the uptrend collapsed three weeks ago.

Final Summary

• KITE cleared the $0.13 resistance and jumped to a monthly high of $0.14 to flip long-term moving averages. 
• KITE still faces strong bearish pressure as risk-off sentiment dominates the market.