KITE extended its rally as investors continued to redirect capital toward the growing AI agent infrastructure narrative.
The renewed industry-wide interest has helped the token outperform many smaller artificial intelligence projects despite continued caution across the broader market.
At the time of writing, KITE was trading at $0.1203 after gaining 13.49% in the previous 24 hours.
Trading activity also strengthened, with daily volume increasing by 54.20% to approximately $48.88 million, showing that new participation accompanied the rally.
Why are traders still betting against KITE?
Despite KITE’s recent gains, Binance’s positioning reflects continued skepticism among leveraged participants.
Data from top traders’ accounts showed that 63.94% of accounts remained short, while only 36.06% held long positions, producing a Long/Short Ratio of 0.56.
Position-based data also favored bearish positions, with 55.22% of exposure on the short side compared to 44.78% allocated to long positions, resulting in a ratio of 0.81.
These figures suggest that many experienced traders were still expecting the recovery to slow down instead of turning into a broader trend reversal.
However, such bearish positioning also increased the likelihood of forced buying if KITE continues to advance, as further upside would push short sellers to close their positions and cut their losses.
Can KITE confirm its recovery?
KITE rebounded from support at $0.1018 and approached the first resistance near $0.1459, reflecting improving buying interest after several weeks of weakness. However, technical confirmation remains incomplete.
The Parabolic SAR continued to print above the candles, indicating that the broader trend remained bearish despite the recent rally.
Meanwhile, the MACD line remained below the signal line, confirming that a bullish crossover had not yet developed.
Despite this, the MACD histogram gradually became less negative, showing that the bearish pressure gradually weakened as buyers regained control in recent sessions.
If the price recovers $0.1459, technical conditions could likely improve further.
However, failure to sustain above $0.1018 could strengthen the current downtrend and delay any confirmed trend reversal.
Where might short sellers face pressure next?
Liquidation Heatmap has highlighted several concentrated short positions located above the current market price of KITE.
The closest liquidity cluster appeared around $0.124, followed by increasingly dense pockets of liquidation between $0.128 and $0.135.
These levels represented areas where additional buying could trigger forced short liquidations, potentially accelerating volatility if the rally continues.
In contrast, downside liquidity remained comparatively lighter below the current price, suggesting that immediate selling pressure had less liquidation-related influence than overhead resistance.
However, bulls still needed sustained demand to reach these clusters, as bearish positioning alone would not guarantee a squeeze.
Rather, the heat map indicated where market participants would likely react most aggressively once the price approached these levels.
In summary, KITE’s recovery remained supported by renewed interest in AI agent infrastructure, while increased commercial activity reinforced the latest advance.
However, technical indicators have yet to confirm a complete trend reversal, leaving the rally vulnerable below key resistance.
If buyers break through the overhead liquidation clusters and reclaim $0.1459, the very short market could fuel a stronger rally.
Otherwise, the broader bearish structure would likely remain intact.
Final summary
- Interest from AI agents has fueled KITE’s rally, but technical indicators are still awaiting full bullish confirmation.
- Significant short positioning could amplify gains if buyers reclaim the next major resistance level.
