YEREVAN (CoinChapter.com) – KAVA token traded at $1.4 in the European session on Oct 21, after a month of sideways consolidation. However, Kava Network has gained increasing attention from investors, despite charting 85% below its all-time high. Here are several reasons why:
#1 Upcoming Kava 11 launch
As CoinChapter reported earlier, Kava Network delayed the launch of its liquid staking mainnet several times this year. Originally, the mainnet launch was scheduled for Sept 8. The blockchain platform stated that it delayed the launch to accommodate multiple ‘Tier-1 protocol deployments’ and pinned early October as the target route.
However, the Kava 11 Liquid Staking Mainnet Launch was postponed to Oct 26.
As advertised, the mainnet launch will include features such as Metamask support, KAVA liquid staking, Protocol Owned Liquidity, and the Kava Earn. Moreover, Kava Network aims to become the default DeFi platform by providing stablecoins and decentralized lending against all major crypto assets.
If successful, the launch could boost KAVA’s bullish incentive, providing a strong reason for a timely purchase.
#2 Interest in KAVA on the rise
According to Google trends statistics, the global public’s interest in KAVA is rising. As the chart below illustrates, the heightened interest doesn’t directly result in a price spike. However, there is evidence to suggest the two are correlated after all.
According to financial analysis contributor Jerry Goddard, the correlation exists for Bitcoin. The expert commented, however, that people’s interest doesn’t necessarily follow the price growth.
The most common assumption is that searches increase when the Bitcoin price increases. While this is not entirely wrong, data shows that an increase in Bitcoin-related search interest preceded the Bitcoin boom. But again, this does not imply a spike in searches will affect the pricing.
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While increased interest in KAVA will not directly spike the price, it might be a canary in the coal mine for growing investments.
Also read: Shocking! Bitcoin Hashrate Hits Record High Despite Skyrocketing Energy Costs and Depressive BTC Price.
#3 The token will bottom out soon
KAVA technicals are not completely bullish, as the token formed a ‘descending triangle,’ which features a flat support line, a descending resistance, and a significant mid-range.
Typically, the descending triangle is a continuation pattern, which means after the asset exhausts the pattern, it is likely to adopt the bias preceding the formation.
As the token suffered a 30% drop before the triangle formed, there might be more pain ahead. The target price for KAVA stands at $0.24, over 70% lower than the current value.
The weekly chart concurred with the verdict, showing a possible support confluence near the mentioned target price and a decline in trading volumes.
Meanwhile, the digital asset depends on the Bitcoin price as well.
If the flagship crypto bleeds more in Q4, the same is likely for KAVA. However, if BTC is brewing a retaliation, Kava Networks will also benefit. Generally, a bearish market is a good opportunity to buy cheap and get higher gains.
Thus, KAVA at approximately $0.25 could constitute a profitable market entry.
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