With the broader crypto market retracement, KITE saw one of the biggest declines, ranking among the top losers. The altcoin extended its slide, breaking through the $0.2 support and falling to a low of $0.18 before rebounding slightly.
At the time of writing, KITE was trading at $0.19, down 18.2% on the daily charts. During the same period, its trading volume increased 112% to $81 million, suggesting increased activity on the sales side.
KITE traders adopt a risk-averse stance
As Kite (KITE) extended its decline, exacerbated by the broader market collapse, futures investors turned bearish.
As a result, most market participants have either reduced or completely closed their positions. Data from CoinGlass showed that KITE’s open interest fell 15.4% to $63 million, while derivatives volume increased 98% to $78 million.
A decline in OI as volume increased suggested that traders were aggressively closing their futures positions. Market participation has therefore increased, but on the futures side.
In fact, futures outflows reached $27 million while inflows fell to $23 million. As a result, Futures Netflow fell 1,018% to -$3.73 million.
As the market retreated, speculators panicked and pulled out, fearing further losses. Traditionally, if the market rebounded on increased leverage and these positions were closed, the market tended to decline.
The bearish dynamic is strengthening; more losses?
With bearish sentiment on futures contracts, KITE’s bearish momentum has strengthened significantly.
The altcoin’s Relative Strength Index (RSI) fell sharply from 74 to 49 and entered the bearish zone. Such a drop suggests that KITE faced intense selling pressure.
At the same time, the positive index (+DI) of the DMI fell to 31, while the negative index (-DI) increased to 43. With the ADX reaching 59, this indicates a strong downward trend.
With these momentum indicators defined this way, it suggests that bears are in complete control of the market and that KITE could fall further. Therefore, if capital continues to flow out, the altcoin could lose its $0.18 support and fall to $0.16.
The Spot remains optimistic
As the altcoin fell, Spot investors took advantage of the opportunity and continued to buy the dip. Data from CoinGlass showed that $6.74 million worth of KITE left exchanges, compared to $5.94 million in flows.
As a result, Spot Netflow fell 25% to -$755,000, extending a week-long trend. A negative Netflow suggests that buyers remain active in the market.
Their presence gives the market hope of a possible recovery after the fall. If demand continues during this period, the altcoin will reclaim $0.20 and pave the way for a significant rebound.
Final summary
- KITE fell 18%, breaking above the $0.20 support, reaching a low of $01.8.
- Futures traders have closed their positions aggressively, but spot demand remains stable, giving the altcoin a chance to rebound.
