Kava (KAVA) Price Is Positioned to Move Higher, Here’s Why?
The price of Kava (KAVA) has confirmed the previous significant resistance as support and formed a bullish pattern. It is expected to continue rising in the next few days.
The Kava (KAVA) price has been moving higher since bouncing from the long-term support zone at $0.55 on October 16, 2023. During this upward movement, the price broke above the $0.74 resistance zone in early November and confirmed it as support in the following six weeks.
In the week from December 18 to 24, the KAVA price formed a bullish engulfing pattern at the $0.74 level (green arrow). This is a bullish pattern, indicating that the bulls have taken full control of the market.
The weekly RSI (Relative Strength Index) surged from the 50 level at the time of the pattern formation, sloping upwards, supporting the possibility of further upside.
Therefore, the KAVA price is likely to continue rising towards the next significant resistance at $1.17. This figure corresponds to a 23.39% increase from the current price level.
The daily chart shows that the KAVA price has broken above the horizontal resistance at $0.86 and confirmed it as support on December 31st (green arrow).
This indicates a shift in sentiment from selling on rallies to buying on dips. It is a sign of the continuation of the upward trend.
The daily RSI is above 50 and sloping upwards, indicating that the bulls are in control of the market.
The most likely scenario suggests that the KAVA price will continue to rise in the coming days. The potential target for this movement is $1.17.
This bullish outlook would be invalidated if the KAVA price breaks down below the $0.74 zone on the weekly timeframe.
Disclaimer: Please note that this article is for informational purposes only and should not be taken as investment advice. As an investor, it is important to do your own research before making any decisions. We are not responsible for any investment decisions you make based on this information. Not Financial Advice.
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