KITE bounced back with strength from a $0.18 slip, clearing all February losses. After successfully defending $0.2, the altcoin jumped to a new all-time high of $0.3036
At the time of writing, Kite [KITE] was trading at $0.3099, up 26.29% on the daily charts. This price uptick was backed by 156% jump in trading volume – A sign of greater market participation.
KITE buyers pile in, defending key levels
After KITE dropped to a low of $0.21 three days ago, buyers stepped in and aggressively bought the dip. In fact, buyers’ strength skyrocketed too while outpacing sellers. In fact, a look at the Buyer Seller Strength metric revealed that buyers have dominated the market for two consecutive days.
On 5 March, their strength jumped to 86. A day later, it climbed to 93, compared to 6 for sellers.
The Buyer Seller Dominance further validated these market dynamics. Over this period, Buyer Dominance exceeded 46 million, recording figures of 26 million at press time.
Traditionally, sustained market demand has strengthened upward momentum, leading to higher prices.
Profit takers threaten to spoil the party!
As expected, after the altcoin rallied to a new all-time high, holders and investors rushed into the market and cashed out. According to Coinglass, the altcoin’s Exchange Inflows surged to $32.2 million, compared to $30.9 million in outflows.
As a result, KITE’s Spot Netflows jumped by 215% to $1.28 million. Usually, when netflows are positive, it means more sell-side activity than buy-side activity.
Such market conditions have tended to cause higher downside pressure as the supply available to sell rises – A prelude to price pullbacks.
What does the momentum indicator say?
KITE reached another high as buyers dominated the market, and profit takers’ attempts proved inadequate to derail the upward momentum. In doing so, its momentum indicators showed a strong bullish bias.
In fact, the Relative Strength Index (RSI) made a bullish crossover and jumped to 64, signaling strong buying pressure in the market. Likewise, the altcoin’s Relative Vigor Index (RVGI) also made a bullish crossover and rose to 0.0192, further validating the trend’s strength.
These two indicators signaled a likelihood of the market trend holding firm if the demand holds. Thus, if bullish sentiment continues to dominate, KITE could establish a solid foundation above $0.3 and eye another ATH.
On the other hand, profit realization remains a serious threat to recent gains. If sellers continue to cash out, sharp downside pressure could drive KITE to $0.23.
Final Summary
- Kite [KITE] rallied by 26%, hitting a new all-time high of $0.303 on the back of strong bullish momentum.
- Profit realization soared as holders sold into the rally, threatening recent gains.
