Kite (KITE) faced strong downside pressure after a rejection near $0.31 four days ago. The token slipped to $0.20, trading below the short-term moving averages.
At press time, KITE was trading at $0.2018, down 7.78% on the daily chart. Weekly losses extended to around 11%. Spot and derivatives data showed traders were positioned for further decline.
KITE weakens as momentum turns bearish
After touching $0.30, KITE saw aggressive profit-taking for two consecutive sessions. Sellers overwhelmed buyers as overall market sentiment weakened.
Geopolitical tensions added to risk aversion at the end of February. This change has created further downward pressure on altcoins.
Source: TradingView
On the 1D chart, the price has fallen below the ascending channel support. This outage confirmed short-term structural damage.
At press time, the Buy-Sell Strength Indicator showed readings of -39 and -43 across its components. This indicates dominant selling pressure.
Seller strength stood at 80.77, while buyer strength dropped to 19.22. This imbalance reinforced bearish control.
Investors reduce their exposure and risk appetite collapses
Nonetheless, the futures market offered further confirmation.
Open interest fell 17.26% to $55.47 million, while volume increased 33.91% to $178.42 million. This divergence generally indicated the closing of positions amid intense trading activity.
At press time, the Long/Short ratio stood at 0.8501. On Binance, the Long/Short ratio was 0.4601.
Source: CoinGlass
Binance Top Trader Long/Short Printed 0.4443. Meanwhile, the Top Trader Long/Short (Positions) was reading 1.6191.
This distribution suggests that retail accounts were short, while larger positions remained relatively balanced.
Is $0.2 Support Under Threat?
KITE saw strong downward momentum as sellers dominated the spot and futures markets. Due to this, the altcoin’s relative strength index (RSI) fell below 50, dropping to 47.
With the RSI stabilizing in the bearish zone, this indicates strong selling pressure. Likewise, the altcoin fell below the EMA20 at $0.22, validating this bearish movement.
Source: TradingView
The momentum indicators are both showing weakness, signaling a potential continuation of the trend. Continuation of the dominant trend could see KITE lose the $0.2 support and fall to $0.18, where the EMA50 is located.
For a trend reversal, KITE must hold $0.2 and reverse the $0.22 resistance level; if we do not do this, the downtrend will continue.
Final summary
- KITE fell to $0.2018 after a rejection near $0.31, extending weekly losses to around 11%.
- The buy-ask force printed -39 and -43, confirming strong sell-side pressure.
