Kite [KITE] has seen a quick rebound as the market adjusted following the massive Binance hack event. According to CoinMarketCap, the asset remained among the top gainers in the past 24 hours, posting a gain of around 13% at press time.
Structurally, the long-term chart shows that there is a chance KITE could sustain its run, delivering a double-digit percentage return. However, there are certain barriers ahead of the price.
KITE faces resistance despite a 13% rebound
KITE has been on the bullish side of the market since November 1.
The gain on the chart followed the asset’s reaction off an ascending support line that began three days earlier, leading it to overcome a descending resistance line (dotted) that had trapped the price for weeks.
However, despite the gain, there is a level that the price needs to overcome on the chart, between $0.122 and $0.124, which could potentially hinder its rally in the near term.
Failure to cross this level could see the price retest the ascending support line that initiated or acted as a catalyst for the rally.
On the bullish side, a surge past the resistance level ahead could see the price extend its gains, reaching $0.158, which could deliver a 27% return in the near term.
Bullish indicators point to further gains
The indicator analysis of the price shows that there has been a possible surge in the short term for KITE in the market.
The upward movement in the Money Flow Index (MFI) signifies that there is a high chance the asset could continue moving upward, as the indicator maintained a reading of 44.26 on the chart.
Notably, should the MFI cross above 50, it would imply that traders have a deeper concentration of capital, suggesting that more upside potential remains intact.
The Aroon Indicator, on the other hand, shows that the bullish scenario is still in formation, based on the lines on the chart. A bullish scenario forms when the Aroon Up (orange) is above the Aroon Down (blue). Presently, the Aroon Up has a reading of 100.00%, while the Aroon Down has reached 85.71%.
However, the extent of the bullishness remains minimal. A strongly bullish market often sees two extreme readings, with the Aroon Up at 100% and the Aroon Down at 0.00%. Until this separation happens, the extent of the bullishness may remain limited.
Long positions support the rally
In the perpetual market, traders have a clear outlook on price, based on the Open Interest (OI)-Weighted Funding Rate, which posted a reading of 0.0099% on the chart.
When the OI-Weighted Funding Rate is positive, it implies that there are more long positions than short positions at the present time. This could potentially impact price performance, as KITE’s gains remain in focus.
What’s worth watching is the market sentiment, which has a neutral reading of 0.00, according to CoinMarketCap, as investors have yet to form a general consensus on whether KITE is bullish or bearish.
For now, though, a continued KITE rally could feed into improving investor sentiment, with a growing number of market participants contributing to the bullish outlook.
Final Summary
-
KITE has gained 13% in 24 hours, but resistance between $0.122 and $0.124 could limit its rally.
-
Bullish indicators and a positive OI-Weighted Funding Rate support further upside, with $0.158 as the next target, representing a potential 27% gain.
Credit: Source link