Key Takeaways:
- KAVA, the native crypto of DeFi platform Kava, gained 71.6% since July 21.
- The DeFi platform announced the launch of its testnet for Kava Swap.
NEW DELHI (CoinChapter.com) — Kava, the cross-chain DeFi platform offering collateralized loans, announced the launch of a test-net for its upcoming Kava Swap protocol. The fundamental assisted the platform’s in-house cryptocurrency, KAVA, jumped 71.6% from July 21’s low of $3.214 to reach Tuesday’s high of $5.516.
The Climbing Price Chart
Despite a death cross forming on June 29, KAVA prices kept going up till July 7. Then, however, the DeFi crypto began a bear run on July 8 that lasted for two weeks. Once the crypto market started gaining on July 21, KAVA followed suit. With the Kava Swap testnet news apprehensively propelling it, the digital currency marked seven green candles in a row on the daily chart.
KAVA rebounded from support at the $3.20 level to begin its ongoing bull run. Moreover, the DeFi crypto is now trading above the 50-Day (Yellow) and 200-Day (Red) Moving Average (MA) waves, making it bullish in short and long-term ranges.
Also Read: Amazon denies Bitcoin payment rumors; BTC price dumps 10%
In addition, the 20-Day Exponential (Blue) MA has formed a support confluence with the 50-Day MA at the $3.93 level. If the current rally fails, $3.93 will become crucial support for the bulls to consolidate. KAVA tested resistance at $6.00 on Monday before correction set in and pulled back prices.
Hence, $6.00 resistance is the current target for bulls.
If the rally continues above the immediate resistance, prices may reach $6.54 before any pullbacks occur. The $6.54 level acted as support from April 1 to April 16 this year. Interestingly, the cryptocurrency reached its ATH of $8.281 on April 6.
On the other hand, if the rally fails, bulls can find support at $3.050, a historically strong support level.
Trend-based momentum oscillator MACD is bullish for KAVA. The MACD line (difference of 12-Day and 26-Day EMA) is significantly above the MACD signal line (9-Day EMA of MACD), as the MACD histogram’s rising bars show.
Although the relative strength index for KAVA is technically neutral at 68.09, the value is dangerously close to the overbought levels. Therefore, the RSI is used to assess price momentum.
Increasing volumes indicate the bullish momentum for KAVA is strong.
What Is Kava Swap Testnet?
Kava Swap is a cross-chain Autonomous Market Making (AMM) protocol, which provides a way to swap between assets on different blockchains. Moreover, it also helps deploy capital in market-making pools. In hindsight, an AMM protocol offers a trading system that hinges on autonomy, liquidity, and automation.
Also Read: Cryptocurrencies are worthless, says the world’s largest listed hedge fund manager.
Kava Swap targets capital distribution across different blockchains, DeFi apps, and financial services.
In its Kava Swap test net announcement, the inter-ledger solutions provider invited the community to test its latest offering. The DeFi platform also offered a chance to earn $130,000 in the incentivized test run. The competition will be active between July 28 to August 4, while the mainnet launch is on August 30.
The competition will choose winners based on a ‘combination of tradings profits and liquidity provider (LP) rewards.’
Unlike most DeFi Platforms that run on Ethereum, Kava is built atop the Cosmos blockchain.
At the time of writing, the crypto was trading at $5.400, up 7.03% on the day.
One Comment “KAVA climbs over 70% ahead of key AMM protocol testnet launch”