Kaito (KAITO) gained more than 13% in 24 hours as trading activity accelerated. The rally pushed its weekly gains above 25%, extending the altcoin’s bullish structure.
However, an upcoming token unlock could test whether buyers have enough capital to support the move.
Why is trader interest increasing?
Derivatives traders have shown the greatest interest in the KAITO token this year, with Open Interest (OI) reaching $70.88 million. OI has exceeded the $60 million mark, reached at the start of the year and which remains the highest since the beginning.
When OI increases alongside price action, it indicates that more long positions are being stacked.
Additionally, daily trading volume more than tripled from $15 million on July 12 to over $47 million.
Token Terminal placed the weekly total slightly above $209 million. Its chart also shows consistent growth over five consecutive days. Together, rising volume and Open Interest showed stronger market participation behind KAITO’s rally.
Can bulls clear $0.85?
KAITO also broke out above the $0.38 to $0.54 range, which had contained the price since late March.
Buyers crossed the upper limit of the range in early July, confirming a bullish structural change. Net volume remained positive, with net purchases reaching approximately 1.98 million KAITO at press time.
Meanwhile, Bollinger Bands have expanded after an earlier squeeze. This indicates that price volatility increased after the breakout.
Despite this, KAITO encountered resistance between $0.80 and $0.85. Price momentum has slowed around this area, clearly hinting at the next test of the rally.
Will the unlock token block KAITO?
The potential reason for this lag could be anticipated selling pressure from upcoming token unlocks.
According to Tokenomist, around 17.60 million KAITO tokens worth $14.93 million would be released in three days. Usually, such activities tend to create selling pressure as they increase the circulating supply in the market.
Nonetheless, with capital to absorb this supply, price action could continue to rise, especially if the bulls continue to buy.
Therefore, the market structure remains bullish in the near term, but this could change if supply dynamics outweigh capital inflows.
Final summary
- KAITO AI is up 13% in 24 hours as OI hits its highest level this year and token volume increases 3x this week.
- KAITO price has broken out of a sideways market this month and has been rising, but faces a key test amid the token’s upcoming unlock.
