KAIA defies low liquidity to rally 14% – Can it target $0.135 next?

• KAIA recorded the very best market acquire previously 24 hours, overcoming a key resistance degree.
• Evaluation signifies that regardless of low liquidity, KAIA nonetheless has a powerful likelihood of continuous its rally.

Within the final 24 hours, Kaia [KAIA] posted essentially the most important market surge, rallying by 14%, although it stays down 2.14% in its total month-to-month motion.

Regardless of liquidity issues, analysts counsel that market sentiment stays optimistic, and KAIA’s upward momentum is more likely to proceed.

Liquidity sinks, hinting at diminished community utility

As of now, KAIA continues to face liquidity challenges, with traders largely exiting their staking positions.

Information reveals that the Complete Worth Locked (TVL), a key metric for gauging investor sentiment in blockchain ecosystems, has steadily declined.

Supply: DeFiLlama

After peaking at $32.49 million on the twenty third of April, the TVL has dropped constantly, with no main restoration. It stood at $28.15 million, at press time, marking a $4.34 million decline from its peak.

Apparently, this discount in investor deposits into KAIA-based protocols has coincided with a major drop in buying and selling exercise on Decentralized Exchanges (DEXs).

On the time of this report, buying and selling quantity has fallen from a yearly excessive of $231,036 to simply $74,811.

Supply: DeFiLlama

This sharp decline means that merchants have exited the chain, lowering the utility of KAIA and placing downward stress on its value.

In distinction to the bearish indicators, the market reacted positively, with KAIA recording a notable rally at the same time as merchants exited.

The chart reveals a bullish breakout, however RSI warns of…

KAIA’s current rally adopted its breakout above a serious resistance degree, in keeping with chart evaluation.

This degree was a part of a broader descending market channel that sometimes precedes an upward market reversal.

After forming a collection of decrease highs and lows, KAIA breached the resistance line and started climbing towards the channel’s peak. This places the following potential value goal within the $0.134 to $0.135 vary.

Supply: TradingView

Whereas this transfer suggests additional upside potential, technical indicators present indicators of purchaser exhaustion.

The Relative Energy Index (RSI) confirms this, having crossed into the overbought zone—above 70—and now sitting at 79.17. This alerts the potential for a sudden value correction.

On-chain metrics flip bullish — Merchants double down on KAIA

Regardless of technical warning, market contributors proceed to open lengthy positions, with Open Curiosity (OI) rising sharply alongside total buying and selling quantity.

On the time of writing, OIt had surged by 109%, reaching $25.87 million.

Whereas this doesn’t mechanically assure a continued rally, evaluation of the Open Curiosity Weighted Funding Charge, which has turned constructive, helps bullish expectations.

Supply: CoinGlass

A constructive OI Weighted Funding Charge signifies that lengthy merchants are presently dominating the market and paying increased charges to take care of their positions.

As well as, the Lengthy-to-Brief ratio stands at 1.0338, suggesting that purchasing stress in derivatives markets outweighs promoting exercise.

The convergence of those bullish alerts strengthens the case for KAIA’s rally to proceed.