KAVA Holds Crucial Falling Wedge Support, Eyes Breakout Toward $2.50 Target
- KAVA holds wedge support, setting the stage for a potential bullish reversal.
- Oversold RSI and narrowing wedge patterns point to weakening bearish momentum.
- Breakout targets could stretch up to $2.50 if rally momentum is strong.
KAVA is trading near key wedge support ,with technical signals hinting at a possible bullish reversal. Traders are now watching closely for a breakout that could spark upside momentum.
Sixth Touch on Falling Wedge
KAVA is showing signs of a textbook falling wedge formation on its weekly KAVA/USDT chart, shared by crypto analyst Jonathan Carter. This classic bullish reversal pattern has been taking shape since the token’s downtrend began in 2021.
Price is now trading at the lower boundary of the wedge near $0.15, marking the sixth touch on the descending support—a point where many successful breakouts occur. Each contact with this level further validates the pattern and indicates weakening bearish momentum.
The falling wedge has become narrow over time,showing that the selling pressure is fading. If bulls manage to break above the resistance, the pattern would confirm a breakout, to more upside moves.
Signs of a Possible Price Reversal Emerging
These are past resistance zones at $0.255, $0.530, $1.165, and $2.50 are likely targets if momentum builds.The RSI is sitting just above the oversold area, which usually signals that selling pressure is easing.
For the breakout to be real and hold strong, there needs to be solid buying volume. If that comes in, it could trigger a short squeeze as many traders are still betting against KAVA.Analysts point to a parabolic projection on the chart, represented by a white arrow, signaling a potential sharp move upward post-breakout—should momentum align.
Risk Remains if $0.15 Support Fails
Despite bullish indications, risks are evident. If $0.15 fails to hold, the wedge pattern would be invalidated, opening the door to further declines and triggering stop-loss hunts below current levels.The recent sharp crash observed in Crypto space saw KAVA drop from $0.35 to $0.17 in hours amid extreme volatility, highlighting how fast sentiment can shift.
However, since the crash, price has stabilized above $0.18, with MACD and RSI showing early signs of a potential bounce. Market cap data from October 10–11 showed an 85% intraday wipeout—from $350M to under $50M—followed by a quick partial recovery to $200M, suggesting capitulation may have occurred.
While long-term recovery requires trust and stability in the project’s fundamentals, short-term technicals are aligning for a possible breakout. If bulls reclaim ground above $0.20 with volume, KAVA could be primed for a major reversal rally.
