Yerevan (CoinChapter.com) – KAVA, the native token of the Kava DeFi lending platform, rode the recovery wave and gained a whopping 92 percent since July 21. However, the rally hasn’t been consistent, as it stagnated for a few days before shooting to $6.18 on August 2, registering a two-month high.
The token advanced an essential milestone for the platform: the Kava Swap mainnet on August 12.
Kava Swap is a cross-chain liquidity hub for DeFi apps and financial services. The hub’s goal is to make sure users can seamlessly transfer their assets and trade without leaving the Kava ecosystem.
Users of Kava Swap will be able to trade and swap assets on the Kava mainnet and earn rewards by providing liquidity, i.e., using their assets to profit on the platform, without switching them.
The platform will not use KAVA as a governance token for the app, as the company announced.
“The token needs to be preserved as a reserve asset responsible for recapitalizing the lending platform”, stated the company among other reasons for the decision.
While the Kava Swap mainnet still has ten days to launch, the digital asset rallied, logging a 92 percent gain.
Also read: KAVA climbs over 70% ahead of crucial AMM protocol testnet launch.
KAVA went from $3.23 low on July 21 to $6.03 on August 2. The token has traded in a symmetrical triangle since mid-May. The pattern consisted of two trendlines with a similar slope, enveloping the price action. The digital asset broke out of the pattern on July 23 and kept the bullish momentum until Thursday.
The price consolidated for a few days before logging another upward move on August 2. As a result of the bullish price action, the cryptocurrency registered a golden cross between the 20-day exponential moving average (EMA-20; blue wave) and the 50-day simple moving average (SMA-50; red tide).
In detail, the golden cross is a bullish predictor for as long as the EMA-20 manages to hold a position above the long-term MA.
The relative strength index (RSI: an indicator of a price momentum) also went bullish and reached 72. At this RSI, the traders might consider the coin overbought and wish to secure their assets by relocating them.
As of the moment, the price fluctuations depend not only on the ubiquitous climate across the altcoin market but also on the upcoming mainnet launch. However, should Kava Swap launch successfully, the digital asset could be looking at further gains.
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