KITE price prediction: Is a pullback to $0.20 likely next?

Kite [KITE] rallied in phases relatively than a single spike. Worth first revered a rising trendline close to $0.16, forming increased lows towards $0.21. This base‑constructing interval established stability earlier than momentum expanded.

Bulls then pushed the worth by the $0.24–$0.25 resistance zone, triggering a pointy advance towards $0.265–$0.268. The latest excessive close to $0.2706 now acts as rapid resistance.

Supply: TradingView

 Concurrently, the RSI surged to roughly 70.6, at press time, demonstrating strong momentum and a touch of short-term pressure.

If the worth weakens, the Fibonacci retracement ranges present draw back markers. The 50% degree stands at $0.1995, whereas the 61.8% degree sits at $0.1808.

A deeper correction would expose $0.1200. For now, construction stays bullish so long as KITE holds above $0.25.

Momentum accelerated additional, delivering a 153.4% achieve over 30 days, whereas spot traded close to $0.265–$0.2685.

As the worth climbed, buying and selling exercise intensified. 24-hour volume rose towards $192.8–$193.4 million, lifting market capitalization to roughly $477.56 million. This liquidity enlargement signaled rising speculative participation.

In the meantime, derivatives positioning amplified the transfer. Open Interest (OI) from $35 to $40 million. As momentum strengthened into February, OI breached $60 million, then accelerated towards $100–$120 million as worth pressed $0.26–$0.27.

Supply: CoinGlass

Moreover, Funding dynamics added affirmation. Charges flipped persistently constructive, with bursts reaching 0.03%–0.045% throughout upside expansions. The proof signifies longs paid a premium to take care of publicity, reflecting a speculative conviction.

Temporary funding compressions aligned with minor pullbacks, suggesting leverage resets as an alternative of structural weak spot.

This simultaneous rise alerts recent leveraged positioning getting into the development relatively than a short-covering spike.

Collectively, rising costs, increasing OI, and elevated funding assemble a leverage-supported breakout. Whereas this fuels continuation potential, crowded lengthy positioning will increase liquidation vulnerability if momentum cools.

KITE now trades simply beneath a dense resistance cluster between $0.277 and $0.2995, the place liquidity focus will determine continuation. If consumers safe sustained 4-hour closes above $0.27, upside momentum might lengthen towards the $0.30–$0.35 enlargement zone.

Supply: TradingView

Nonetheless, RSI at 72 alerts stretched positioning, which means momentum should cool constructively relatively than reverse sharply. Ought to MACD start compressing whereas worth stalls beneath resistance, leverage unwinds might set off a pullback.

In that state of affairs, the $0.248 SMA turns into the primary dynamic assist, adopted by structural demand close to $0.23–$0.25. A deeper flush towards $0.183 stays unlikely except market-wide danger aversion accelerates.

For now, continuation relies on quantity persistence and resistance absorption.

Remaining Ideas

• Momentum stays structurally intact, with leveraged participation and quantity enlargement reinforcing upside strain regardless of crowded lengthy positioning dangers.

• Continuation hinges on reclaiming $0.27 resistance, whereas failure would redirect liquidity towards $0.25 assist with out breaking the broader bullish construction.

Disclaimer: The knowledge offered doesn’t represent monetary, funding, buying and selling, or different varieties of recommendation and is solely the author’s opinion.