Kaia [KAIA] traded within a steep downtrend for eight consecutive months, reflecting intense bearish pressure. However, after dropping to a low of $0.05, KAIA held firm, rebounded, and broke out of a multi‐month descending channel.
The altcoin surged from $0.049 to a two‐month high of $0.084 before a mild pullback. At the time of writing, KAIA traded at $0.079, marking a 39.7% gain in the past 24 hours.
Over the same period, its trading volume jumped 430% to $106 million, while the market cap surpassed $500 million.
What’s driving KAIA’s uptick?
Kaia wallet is integrated into ‘Magic Squad’
In a major boost for KAIA, Metabora Games partnered with Noestallagames to launch the Web3 game’ Magic Squad’.
The newly launched game introduced a gas abstraction feature integrating the KAIA wallet. The feature allows users to pay transaction fees without holding KAIA tokens.
Typically, such integrations attract real usage and expand the utility of tokens within the network. Moreover, the integration showed Kaia’s ability to facilitate a seamless Web3 experience for mainstream users.
Buyers step in with conviction across the market
After KAIA fell below $0.05, buyers, driven by its expansion into Web3 gaming, entered the market and defended the level.
According to Coinalyze data, buyers on Binance and Bitfinex stepped in with strength and bought the dip. KAIA saw 144 million in Buy Volume compared to 140 million in Sell Volume, as of writing.
As a result, the market recorded a positive Buy Sell Delta of 4 million, reflecting buyer dominance, a sign of spot accumulation.
On the Futures side, as KAIA continued to rise, traders rushed into the market, chasing the rally.
According to CoinGlass, Derivatives Volume climbed 1046% to $360 million while Open Interest (OI) rose 279% to $31 million, at press time.
With OI and Volume surging in tandem, it signalled increased participation and higher capital flows into the futures. In fact, over $123 million flowed into Futures positions, reflecting higher demand for long or short positions
Meanwhile, KAIA’s Long/Short Ratio rose to 1.04, with Binance Top Traders accounts dominating long positions. When this ratio is above 1, it suggests that most participants were bullish and took long positions, anticipating higher returns.
Can KAIA’s upside momentum hold?
KAIA rallied as buyers stepped in across the spot and futures market, effectively defending key levels. Even after the altcoin reached $0.06, demand continued to grow as investors chased the rally, fearing they would miss out.
As a result, the altcoin’s Relative Strength Index (RSI) made a bullish crossover and rose to 70, at press time, reflecting buyers’ total dominance.
At the same time, its Directional Movement Index (DMI) made a bullish crossover and climbed to 48, while the negative index fell to 30.
When these momentum indicators reach such elevated levels, it signals the potential for trend continuation. Thus, if buyer dominance persists, KAIA could reclaim $0.1 and eye $0.11 resistance.
Conversely, if the futures market bubble bursts while holders seek to realise profits, the altcoin will likely retrace to $0.06.
Final Thoughts
- KAIA surged 39.7% to a 2-month high of $0.084, before slightly retracing to $0.079 at press time.
- KAIA rallied as buyers stepped in to defend key levels, driven by Kaia wallet integration into the Web3 game’ Magic Squad.
