Kava (KAVA) Price Rallies 10% In 7 Days – Here’s Why

0 10

KAVA, the native token associated with the Kava platform, has experienced a whirlwind week regarding its price swing. The token, which began the week trading around $1.03, surged to $1.23 on May 23, driven by positive news within its ecosystem. 

However, the bull momentum was short-lived, with the token recently experiencing a significant price correction. Nevertheless, at the time of writing, KAVA is up 10% and is one of the top gainers in the crypto market within this period. 

Kava has experienced a significant price correction this week; source @tradingview

knife

What’s Behind The Recent Spike In Kava?

However, it is important to analyze the factors behind this rally to assess its sustainability. Cryptocurrencies are known for their price volatility, and sudden reversals are not uncommon. In the case of KAVA, the token experienced a swift downturn following the initial surge, raising concerns about the solidity of the upward movement. 

Related Reading: Bullish Case For Litecoin Grows Stronger As LTC Halving Draws Close

This pattern is often observed when a rapid rise lacks strong fundamental support, leading to a correction as the market adjusts itself. In terms of recent developments, it was reported that the Digital Asset Exchange Association (DAXA) in South Korea removed investment warnings on KAVA and WAVES, the latter being another digital asset associated with the Waves platform. 

The warnings had been issued due to concerns about stablecoins linked to these assets, which were found to be “not normally linked to 1 dollar”. However, after a thorough review, DAXA determined that the risks associated with KAVA and WAVES had been resolved, allowing South Korean exchanges to resume deposit services for these tokens. This news likely contributed to the positive sentiment surrounding KAVA and may have played a role in the recent price rally.

In addition, the launch of the Kava 13 mainnet and the introduction of GameFi (Game Finance) and non-fungible tokens (NFTs) to the Kava ecosystem have also contributed to the positive momentum for the KAVA token. These developments have attracted attention and interest from users, investors, and traders, potentially driving the token’s price higher.

What’s Next For KAVA?

The price surge experienced by KAVA stands out as an outlier within the broader context of the cryptocurrency market. Considering the overall outlook, such gains may not be sustainable, and a subsequent correction could erase the entirety of the upward movement.

Related Reading: Upcoming Interest Rate Hikes Could Be The Next Big Challenge For Bitcoin, Here’s Why

If the current levels near $1.20 fail to provide sufficient support, KAVA/USD might retreat towards the support level at $1.10 or even lower.

Kava currently trading below the $1.20 resistance mark: source @tradingview

However, on the other hand, if there is an overall uptick in the market sentiment or if there is fresh, positive news specific to KAVA, it could potentially lead to renewed buying interest and push the price toward a retest of the recent highs. At press time, KAVA sells at $1.134 per token with a slight 0.9% 24-hour increase.

-Featured image from Kava.io, charts from tradingview.com

Leave A Reply

Your email address will not be published.

bitcoin
Bitcoin (BTC) $ 66,496.82
ethereum
Ethereum (ETH) $ 3,592.03
tether
Tether (USDT) $ 1.00
bnb
BNB (BNB) $ 606.62
solana
Solana (SOL) $ 148.95
staked-ether
Lido Staked Ether (STETH) $ 3,590.71
usd-coin
USDC (USDC) $ 1.00
xrp
XRP (XRP) $ 0.493143
dogecoin
Dogecoin (DOGE) $ 0.135556
the-open-network
Toncoin (TON) $ 7.95
cardano
Cardano (ADA) $ 0.413392
shiba-inu
Shiba Inu (SHIB) $ 0.000021
avalanche-2
Avalanche (AVAX) $ 29.66
tron
TRON (TRX) $ 0.117371
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 66,527.82
chainlink
Chainlink (LINK) $ 14.88
polkadot
Polkadot (DOT) $ 6.33
bitcoin-cash
Bitcoin Cash (BCH) $ 424.24
uniswap
Uniswap (UNI) $ 11.06
near
NEAR Protocol (NEAR) $ 5.54
litecoin
Litecoin (LTC) $ 78.40
matic-network
Polygon (MATIC) $ 0.613046
leo-token
LEO Token (LEO) $ 5.93
wrapped-eeth
Wrapped eETH (WEETH) $ 3,727.66
dai
Dai (DAI) $ 0.999913
pepe
Pepe (PEPE) $ 0.000012
internet-computer
Internet Computer (ICP) $ 9.39
kaspa
Kaspa (KAS) $ 0.157585
ethereum-classic
Ethereum Classic (ETC) $ 25.03
fetch-ai
Fetch.ai (FET) $ 1.42
renzo-restaked-eth
Renzo Restaked ETH (EZETH) $ 3,578.81
ethena-usde
Ethena USDe (USDE) $ 1.00
aptos
Aptos (APT) $ 7.75
monero
Monero (XMR) $ 175.01
render-token
Render (RNDR) $ 8.12
hedera-hashgraph
Hedera (HBAR) $ 0.085294
filecoin
Filecoin (FIL) $ 5.20
mantle
Mantle (MNT) $ 0.880852
stellar
Stellar (XLM) $ 0.098567
cosmos
Cosmos Hub (ATOM) $ 7.13
okb
OKB (OKB) $ 46.11
blockstack
Stacks (STX) $ 1.85
arbitrum
Arbitrum (ARB) $ 0.908186
crypto-com-chain
Cronos (CRO) $ 0.097258
first-digital-usd
First Digital USD (FDUSD) $ 0.999579
dogwifcoin
dogwifhat (WIF) $ 2.52
immutable-x
Immutable (IMX) $ 1.66
injective-protocol
Injective (INJ) $ 24.37
sui
Sui (SUI) $ 0.940264
optimism
Optimism (OP) $ 2.06
maker
Maker (MKR) $ 2,411.23
the-graph
The Graph (GRT) $ 0.228006
vechain
VeChain (VET) $ 0.029025
bittensor
Bittensor (TAO) $ 302.00
rocket-pool-eth
Rocket Pool ETH (RETH) $ 3,986.84
lido-dao
Lido DAO (LDO) $ 2.16
floki
FLOKI (FLOKI) $ 0.000197
notcoin
Notcoin (NOT) $ 0.018377
arweave
Arweave (AR) $ 27.98
jasmycoin
JasmyCoin (JASMY) $ 0.037516
fantom
Fantom (FTM) $ 0.632318
mantle-staked-ether
Mantle Staked Ether (METH) $ 3,725.93
ondo-finance
Ondo (ONDO) $ 1.14
theta-token
Theta Network (THETA) $ 1.64
bonk
Bonk (BONK) $ 0.000025
bitget-token
Bitget Token (BGB) $ 1.15
based-brett
Brett (BRETT) $ 0.158942
thorchain
THORChain (RUNE) $ 4.62
celestia
Celestia (TIA) $ 7.98
coredaoorg
Core (CORE) $ 1.63
whitebit
WhiteBIT Coin (WBT) $ 9.62
eos
EOS (EOS) $ 0.645011
aave
Aave (AAVE) $ 87.25
pyth-network
Pyth Network (PYTH) $ 0.354409
algorand
Algorand (ALGO) $ 0.15143
jupiter-exchange-solana
Jupiter (JUP) $ 0.916001
sei-network
Sei (SEI) $ 0.399262
ethena
Ethena (ENA) $ 0.739541
quant-network
Quant (QNT) $ 81.98
starknet
Starknet (STRK) $ 0.905139
gala
GALA (GALA) $ 0.032259
flare-networks
Flare (FLR) $ 0.027057
cheelee
Cheelee (CHEEL) $ 20.15
gatechain-token
Gate (GT) $ 8.53
kelp-dao-restaked-eth
Kelp DAO Restaked ETH (RSETH) $ 3,625.30
flow
Flow (FLOW) $ 0.701761
kucoin-shares
KuCoin (KCS) $ 10.31
beam-2
Beam (BEAM) $ 0.019432
bitcoin-sv
Bitcoin SV (BSV) $ 48.65
axie-infinity
Axie Infinity (AXS) $ 6.56
tokenize-xchange
Tokenize Xchange (TKX) $ 11.86
zebec-protocol
Zebec Protocol (ZBC) $ 0.018504
bittorrent
BitTorrent (BTT) $ 0.00000095665632
ordinals
ORDI (ORDI) $ 43.86
dydx-chain
dYdX (DYDX) $ 1.51
elrond-erd-2
MultiversX (EGLD) $ 32.82
neo
NEO (NEO) $ 12.45
chiliz
Chiliz (CHZ) $ 0.09719
pendle
Pendle (PENDLE) $ 5.55
gnosis
Gnosis (GNO) $ 330.15