KAITO has seen a small dip from its recent all-time high of $2.92, achieved just a couple of days ago. The altcoin is now striving to reclaim that peak, but market indicators are putting downward pressure on its efforts.
The fate of KAITO's recovery is closely linked to Bitcoin's performance, as the two coins are showing a growing correlation in their price movements.
KAITO is in need of support
The increasing correlation between KAITO and Bitcoin indicates that KAITO is mirroring Bitcoin's market behavior more closely. As Bitcoin rebounds from its low of $78,250 to a trading price of $84,719, there is a chance that market sentiment might change. If Bitcoin continues on an upward trend, KAITO's price may also rise in tandem, assuming the correlation deepens.
However, despite the potential for an upward surge, traders are hesitant. The rising negative funding rate of KAITO suggests that many are betting against the altcoin.
With short contracts outnumbering long contracts, traders are cautious about fully endorsing KAITO's recovery at this point. The conflicting signals from market sentiment indicate uncertainty that could hinder KAITO's price movement in the short run.
KAITO's price recovery efforts
Currently priced at $2.22, slightly below the resistance level of $2.26, KAITO faces a challenge in breaching this barrier. Even though the broader market seems conducive to a potential recovery, trader sentiment remains guarded.
While KAITO is striving to surpass this resistance level, a sustained negative funding rate might impede its progress.
Considering these mixed signals, KAITO might trade within a range of $1.86 to $2.44 in the near future. This consolidation implies that the altcoin could struggle to break past $2.44, a crucial resistance point.
A successful breach of $2.44 could spark a potential rally, leading KAITO to surpass its all-time high of $2.92 and potentially exceed $3.00.
Failure to overcome the $2.44 barrier could result in KAITO consolidating below it, staying within the same range. If it drops below $1.86, the optimistic outlook would be invalidated, indicating a potential continuation of the downtrend.