Kite (KITE) has surged nearly 14% in the past 24 hours, reversing some of yesterday’s sharp decline.
The move dented short-term sentiment. Despite this, the broader daily structure remained challenged rather than decidedly bullish.
Trendline support is still in play
On the daily chart, KITE price respects an uptrend line support in place since February 6.
This trendline previously triggered multiple reactions, each followed by short-term rallies rather than lasting breaks.
If this trend continues, the latest retest could fuel another rebound, especially after the sharp daily rise.
However, a sharp break below the trendline would weaken the bullish structure. Further purchases remained necessary to maintain control of the bulls.
Source: TradingView
Momentum indicators indicated an easing of selling pressure.
The Stochastic RSI showed stabilizing momentum after falling towards lower limits, suggesting sellers were losing control.
This configuration has often preceded short-term corrective recoveries, even if it has not yet confirmed a complete trend reversal.
Derivatives paint a cautious picture
Derivatives data reflects a slowdown in speculative activity.
Open interest fell by about $32 million to around $85 million, signaling position closures during the recent decline.
This contraction suggests that traders reduced their exposure rather than aggressively pursuing the rebound.
Source: CoinGlass
At the same time, the Long/Short ratio hovered around 0.75, showing that short positions still slightly outnumbered long positions.
The financing data added nuance. The overall funding rate remained below its expected level by around 0.0189 points, suggesting relatively conservative leverage positioning.
Such divergence often implied a quiet bullish conviction, although it sometimes preceded long tactical entries.
Source: CoinGlass
Bulls at a technical crossroads
KITE was now in a pivotal technical zone.
If trendline support holds and momentum continues to stabilize, short covering could amplify a rebound.
On the other hand, a break below support could accelerate sales and invalidate the recovery attempt.
For now, the strong reaction from trendline support has kept the short-term bias in favor of the bulls, but confirmation remains pending.
Final summary
- KITE rebounded sharply from ascending trendline support held since February 6, triggering dip buying and a resumption of short-term momentum.
- Open interest fell to around $85 million, the long/short ratio remained below 1, and aggregate funding rates remained negative, signaling cautious leverage participation.
