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A failed attempt to breach $2.9 resistance despite massive pump in volume activity indicated the KAVA price respect an inverted wedge pattern

Published June 1, 2022Updated June 2, 2022

On May 13th, the KAVA price bounced back from the $1.6 mark. The resulting recovery gained 82% after hitting the overhead resistance of $2.9. However, this recovery rally resonates with a rising wedge channel of the inverted flag pattern, suggesting the coin price may eventually drop back to the $1.6 mark.

Source- Tradingview

From Mid-November 2021 to early May 2022, the KAVA price bounded within a consolidating range, stretching from $5.6 to $2.93. However, the last reversal from range resistance of $5.6 aligned with the May month bloodbath accelerated the growing selling pressure.

As a result, the KAVA price breached the bottom support of $2.93 on May 9th, extending the ongoing correction phase. Thus, the post-retest fall halved the altcoin price and dumped it to a low of $1.41.

Furthermore, unlike some major cryptocurrencies, the KAVA price has sharply recovered and gained 112% within three weeks. However, on May 31st, the altcoin retest to the overhead resistance, and a long wick attached to it indicates significant supply pressure.

Moreover, the relief rally projects the formation of an inverted flag pattern which should encourage the continuation of the prevailing downtrend.

Thus, the expected downfall should reach its first target at $1.41, followed by $1.2.

A lateral walk among the trend-defining DMAs(100 and 200) accentuates a range-bound rally in KAVA. Moreover, a recent bearish crossover between the 50 and 100 supports the flag pattern fallout.

However, the steady rise of MACD and signal slope bolsters the ongoing relief rally. A potential bearish crossover between these slopes would encourage more selling in the market.

From the past 5 years I am working in Journalism. I follow the Blockchain & Cryptocurrency from last 3 years. I have written on a variety of different topics including fashion, beauty, entertainment, and finance. Reach out to me at brian (at) coingape.com

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

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