YEREVAN (CoinC.com) – Kava Network’s same-named token traded at $1.65 at the New York session opening bell, following a 17% drop in the previous week. However, Kava bulls are far from a rematch, as technicals threatened to drop the digital asset’s price by another 50%.
KAVA in a Bear Flag
Kava followed Bitcoin’s lead and formed a bearish setup dubbed the Bear Flag. The latter occurs after a sharp drawdown. Then the price action fluctuates between two parallel trendlines that take the asset value slightly higher before sending it on a new leg down.
The setup predicts a drop equal to the decline preceding the Flag, i.e., the flagpole. Thus, Kava’s target price stands at $0.8, or 50% lower than the current value. Moreover, the dropping trading volumes testify to the bearish outlook, reflecting disinterest among traders.
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Additionally, the digital asset depends on Bitcoin’s fluctuations. The expectations from the alpha crypto are relatively low ahead of the Federal Open Market Committee (FOMC) meeting on Tuesday. As the inflation continued to grow in the previous month, the crypto community expected the Fed to double down on its hawkish policies. In that case, Bitcoin and, by extension, the altcoin market could fall as casualties.
Meanwhile, Kava Network is preparing for an upgrade that could become a catalyst for the token’s value growth.
Kava Network upgrade
As advertised on Jun. 30, Kava Network will undergo the ‘Kava 11’ upgrade on Aug. 31. Kava 11 is set to come with certain features such as Metamask support for all Kava transactions, Kava liquid staking, Protocol Owned Liquidity, and the Kava Earn.
Also read: Solana (SOL) Price Plunges Below $40 and It’s Vulnerable For Bigger Decline.
According to the announcement, Kava Network aims to become the default DeFi platform by providing stablecoins and decentralized lending against all major crypto assets.
While Twitter was full of users advertising the Kava discord page, it might be a risky investment in Q3, considering the FOMO meeting, growing inflation, and Bitcoin’s bearish vector.
Also read: Ethereum (ETH) risks dropping to $1.3K ahead of the Merge — what to expect?
