Key Takeaways:
- Kava's recent developments adds bullish cues to its prices.
- However, KAVA prices still fell over 16% since Apr 11.
NEW DELHI (CoinChapter.com) — Kava Network’s namesake token prices dropped 16.6% from Apr 11’s high of $4.78 to reach a $3.98 before bulls helped the token recover some of the lost ground.
KAVA fell 12.37% on Monday, breaching below the 200-day moving average (green wave) and 20-day MA (red wave), flipping both into resistance. The long upper wicks on the recent daily candles suggest a profit-booking mentality in traders.
The Kava token continued moving downward on Apr 12, as it tested support near $4, a price level that acted as a resistance between Jan 22 to Mar 27 this year. Additionally, Tuesday’s daily candle’s long bottom wick highlights traders’ aggressive buying spree.
If the token falls below immediate support, it would likely find support from the 100-day MA (purple wave) near $3.81. Finally, KAVA’s 50-day MA (yellow wave) provides support for the token near $3.69.
Moreover, momentum oscillator MACD painted a bearish crossover on Apr 11. A bearish crossover forms when the MACD line (difference between 12-day and 26-day EMA) moves below the MACD signal line (9-day EMA of MACD). Traders often interpret the pattern as a sell signal, further pushing down prices.
Also Read: 3 reasons why Ethereum (ETH) price could rally sharply.
A 73% Jump In 30 Days
If KAVA manages to start an uptrend, the token would first need to flip immediate resistance near $4.3, which supported the token’s price movement between Mar 28 and Apr 10.
Furthermore, the token needs to consolidate above immediate resistance before moving to target resistance from 200-day MA (green wave) near $4.47. Finally, a move above 200-day MA would make KAVA bullish across the long-term time horizon.
As a result, the token’s prices could move to challenge $4.72 before prices pare. Over the last 30 days, KAVA prices have jumped nearly 74% from Mar 14’s low of $2.92 to reach a local high of $5.04 on Apr 9.
Kava prices took bullish cues from the successful completion of the alpha phase of the Ethereum Co-chain launch. The Co-chain would help support Ethereum Virtual Machine (EVM) smart contracts, while the Cosmos Co-chain would support the Tendermint consensus engine.
The expected launch date for the Ethereum Co-chain’s mainnet is May 10.
Kava launches a $750 Million Developer Program
Another reason for KAVA’s month-long rally could be the launch of Kava Rise, a developer incentive program to help onboard new developers from DeFi, gaming, and NFT projects into the Kava ecosystem. The program, launched on Mar 3, has a budget of $750 million.
Also Read: Is KAVA a buy ahead of cross-chain liquidity platform launch?
The program would serve as an on-chain incentive program, distributing 62.5% of all block rewards to developers building on the platform’s Ethereum and Cosmos Co-chains. The program would probably go live with the Kava 10 upgrade.
At the time of writing, KAVA was trading at $4.26, up 2.07% on the day.
