Why is Kava dropping? KAVA retraces after its recent rally
Kava is one of the worst performers today after losing more than 8% of its value in the last 24 hours.
The poor performance comes as KAVA retraces from its recent rally.
Kava recently launched the KAVA 13 upgrade on the mainnet, resulting in the coin rallying by more than 15% earlier this week.
Why is Kava dropping today?
KAVA, the native coin of the Kava ecosystem, is one of the worst performers amongst the top 100 cryptocurrencies by market cap. At press time, the price of KAVA stands at $1.1030 per coin.
The poor performance comes as KAVA is retracing from its recent gains. Last week, Kava launched the KAVA 13 upgrade on its mainnet, resulting in the coin rallying by more than 15% over the last seven days.
SUCCESSFUL LAUNCH: #KAVA 13 Mainnet is LIVE 🚀 pic.twitter.com/wU3peIIMe7
— Kava (@KAVA_CHAIN) May 18, 2023
Kava 13 is a major upgrade for growing numbers of developers and users looking to leverage Kava’s unique chain architecture. The upgrade sees Kava combine the speed and interoperability of Cosmos with the developer power of the Ethereum blockchain.
Since reaching a weekly high of $1.29 per coin, KAVA has been slowly shedding some of its profits.
Kava could drop below $1 soon as the bearish trend thickens
Kava has been underperforming since the start of the week and could be set to dip lower over the coming days. At press time, KAVA is trading just above $1.1 and could drop below the $1 psychological level soon.
The KAVA/USD 4-hour chart is looking bearish, thanks to Kava’s poor performance. The technical indicators show that Kava could drop lower in the near term.
The MACD line is below the neutral zone, indicating that the bears are currently in control. The 14-day RSI of 47 also shows that KAVA could be entering the oversold region if the bearish trend continues.
KAVA could test the first major support level at $1.0146 over the next few hours if the selling pressure persists. If the bearish momentum is sustained, KAVA could drop below the $0.9449 support level for the second time this week.
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