- KAIA was on an uptrend, at press time, despite recent pullback from $0.196
- Sustained buying pressure behind KAIA meant that a pullback might be short-lived
Kaia [KAIA] managed to break above the $0.13 local resistance on 9 June, gaining by 35.6% in a single day. This bullish market structure break began the uptrend of KAIA. The losses Bitcoin [BTC] saw over the past two days have affected KAIA too, which saw rejection at the late January resistance at $0.196.
It may be likely that the week ahead would continue to be tumultuous for the crypto market, with multiple key events lined up for the week. In fact, the Kobeissi Letter made a bullish argument for how the U.S strikes on Iran might lead to a faster resolution of the conflict, but this might be a long shot.
Investors can remain bearishly biased. At the time of writing, KAIA seemed to be maintaining its bullish outlook. Here’s what traders need to watch out for in the coming days.
KAIA to retest the bullish order block – What could follow later?
Source: KAIA/USDT on TradingView
The 1-day chart highlighted a bullish order block at $0.15, marked by the cyan box. It might be likely that the price would dip to this demand zone in the coming days, since the market would likely have be bearish in the coming week.
The selling volume was minimal, as reflected on the OBV. The volume indicator has trended sharply higher, like KAIA, meaning that the uptrend was borne by strong demand.
The Awesome Oscillator and the moving averages also showed bullish momentum. The AO did not seem to display a bearish divergence either.
The next resistance above $0.196 lay at $0.266, while the $0.15 and $0.141 levels appeared to be supports to watch out for.
The 1-month liquidation heatmap did not outline many clear magnetic zones nearby for the price to go to. There seemed to be a build-up of short liquidations at $0.202, above the local high. The $0.144 and $0.12 levels would be the next liquidity pockets to the south.
The $0.144 level lined up well with the $0.141 support level, with the 20-day moving average at $0.147, just below the bullish order block. The confluence of these factors mean that the $0.14-$0.15 region would likely present a KAIA buying opportunity. Especially as the chances of a bullish move from there seemed to be high.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
