Key Takeaways:
- Kava Network's KAVA token risks losing 80% of its valuation.
- Several other technical cues point in a bearish direction.
- The Network upgrade Kava 11 postponed to Oct 26.
YEREVAN (CoinChapter.com) – Kava Network’s same-name utility token price held on to a support at $1.4 after flatlining since mid-September. As a result, it traded at $1.45 in the European hours on Oct 12. However, the digital asset risked losing over 80% of its valuation ‘sell the news’ style, supported by a bearish setup.
KAVA Price In A Descending Triangle
CoinChapter predicted a significant drop for KAVA in late August, and the bearish setup still stands. In detail, KAVA’s daily price chart painted 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, as the target price stands at $0.24, over 80% lower than the current value.
As shown in the chart above, KAVA could bounce back to the formation’s resistance. However, the decline in trading volumes supported the bearish claim, as it indicates traders’ low return expectations from the asset.
Moreover, like many altcoins, Kava Network depends on the overall market bias among digital assets and the broader economy. Thus, potential KAVA investors should be aware of the bearish macroeconomic climate. Because of the broadening Bitcoin adoption, the latter became susceptible to economic turbulence across the globe, exposing altcoins, by extension.
Meanwhile, an upcoming upgrade on the Kava Network could influence the digital asset’s metrics.
Kava 11 Liquid Staking Mainnet Launch Delayed Again
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 once more, setting a date on 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.
Also read: Coinbase(COIN) Stock Jumps On Google Deal to Accept Crypto Payment.
Meanwhile, despite the fundamentals, macro headwinds and the wider crypto market downtrend might result in KAVA prices failing to register an uptrend.
