#KAVA/USDT – Long – Potential 89.95% for BINANCE:KAVAUSDT by CryptoNicho

This support sits in the middle of a big order block which following the support touch has seen price bounce dramatically – not sure what your long term plan is but bouncing back from floor price support is a good sign to go long.

In terms of technicals we can draw in two distinct bullish falling wedge patterns, one from the big May price spike (dotted line – Mainnet launch?) and one from the tighter downtrend that started mid July (solid white line) either way we have a textbook breakout and have crossed the 20 and 50 moving averages – a move that usually triggers lots of automated buys and is probably contributing to the buy order block that occured around this price point.

The RSI though is what I’m most focussed on. On these longer timeframes RSI breakouts are very strong indictaors. The KAVA RSI breakout is near prefect. A 6 month downtrend from overbought to oversold with the break occuring exactly as we reversed from oversold and still to cross the halfway point to overbought indictaing plenty of remaining bullish momentum.

Drawbacks are – yet to cross the 200MA. We’ve tested it 3 times this year (March, May and June) and been rejected 3 times. Big sell orders seem to be active between 0.897 and 1.076, this resistance has capped growth all year and prevented KAVA running up like BTC. We’ll need big volume to breakout here so we are likely dependant on the total market cap expanding for that (so basically despite its bullish chart we’re still at the mercy of BTC – luckily BTC has the ETF’s and Halving which should massively increase volumes and via the old ‘ALT cycle’ KAVA should catch some of that trickledown volume). Last one is a confirmation retrace from here is possible esp. if we see BTC correct short term. Big breakouts often run out of volume and need to dip back into the liquidity which pumped them initially. This often visually looks like price retracing to the top of the broken trendline (where hopefully buy orders remain) before pumping again. This is very possible here with BTC also likely to do the same and lead the market.

Lastly targets. As always I use a FIB and then adjust of rorder blocks so my first target would be 0.897 which lines up closely with the 0.382 fib (adjusted for the sell orders below it), 1.048 – the 0.5 fib at the top of the sell block (tbh if I was actually trading this I’d probably take profit next at 0.99 just because the of the psych $1 point), 1.166 the 0.618 fib level we can see is strong resistance at the start of this market cycle) and finally 1.336 the fib 0.786 just because!

If you are already in profit and just wat an exit you could also look at taking profit at the 200MA as mentioned this has been tough resistance all year.

If you need an ATH type move then hold with the bull run KAVA has a partnership with INJ which I’m very bullish on and tether so falls into the category of real project with actual utility – i.e potential to capitalise on a bullish market over the next 12-18 months.