Kava (KAVA) Surges 40%: Whats Behind the Rise?

Kava (KAVA) Surges 40%: Whats Behind the Rise?


Learn about the recent increase and subsequent drop in KAVA (KAVA) price, as well as a bullish KAVA price prediction based on technical analysis and the Elliott Wave theory.

The KAVA (KAVA) price has cleared an important horizontal support area, leading to a 40 percent increase on May 23.

The price action and wave count both support the continuing increase, indicating that a new yearly high will be reached soon.

KAVA Price Falls After 40 percent Increase

The KAVA Price has increased at a rapid pace since May 8. The increase accelerated on May 23, when the price broke out from a horizontal resistance area that had been in place since the beginning of the year.

This led to a new yearly high of $1.55 the same day, amounting to an increase of 44 percent in a single day (green). 

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Nonetheless, the price failed to maintain most of its increase, dropping by 23 percent afterward (red) and creating a long upper wick.

This is considered a sign of selling pressure since buyers were not able to maintain the price increase. 

Regardless of the fall, the KAVA price still trades over the breakout level at $1.10.

KAVA (KAVA) Price Movement
KAVA Price Prediction
KAVA Price
KAVA Price Analysis
KAVA Price Forecast
KAVA/USDT Daily Chart. Source: TradingView

Furthermore, the RSI provides a positive  tendency outlook. The RSI is a momentum indicator used by traders to evaluate whether a market is overbought or oversold and to determine whether to accumulate or sell an investment.

Readings over 50 and an upward tendency suggest that bulls still have an advantage, while readings below 50 indicate the opposite. The indicator is over 50 and increasing, a sign of a positive  tendency trend.

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KAVA Price Prediction: How Long Will Increase Continue?

The technical analysis from the short-term six-hour chart gives a positive  tendency KAVA price forecast. There are two reasons for this. 

Firstly, the price broke out from a descending resistance line. This aligns with the breakout from the horizontal resistance area and increases its validity. 

Secondly, the wave count supports the increase. To determine the direction of a tendency, technical analysts use the Elliott Wave theory, which involves studying recurring longstanding price patterns and investor psychology.

The wave count signifies that the KAVA price is in the third wave of a five-wave upward movement (white). If so, a potential target for the top will be betwixt $2.06-$2.29, found by the 3.61-4.21 Fib extension of wave one.

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KAVA Price Prediction
KAVA Price
KAVA Price Analysis
KAVA Price Forecast
KAVA/USDT Six-Hour Chart. Source: TradingView

Regardless of this positive  tendency KAVA price prediction, a fall below the wave one high (red line) at $1.03 will mean that the tendency is bearish. 

Source

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This page is simply meant to provide information. It does not constitute a direct offer to purchase or sell, a solicitation of an offer to buy or sell, or a suggestion or endorsement of any goods, services, or businesses. Lolacoin.org does not offer accounting, tax, or legal advice. When using or relying on any of the products, services, or content described in this article, neither the firm nor the author is liable, directly or indirectly, for any harm or loss that may result. Read more at Important Disclaimers and at Risk Disclaimers.




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