Following a month of sideways consolidation, the KAVA token traded at $1.4 during the European session on October 21. Even though Kava Network’s chart is 85% below its all-time high, investors are paying more and more attention to it. Here are a few explanations:
1. Kava 11 launch
This year, Kava Network repeatedly postponed the rollout of their liquid staking mainnet. Initially, Sept. 8 was assigned as the date for the mainnet’s launch. However, the blockchain platform postponed the launch date to early October and claimed that the delay was necessary to accommodate multiple ‘Tier-1 protocol deployments’. The Kava 11 Liquid Staking Mainnet Launch has been pushed back until October 26.
As promised, features like Metamask support, Kava Earn, KAVA liquid staking, and Protocol Owned Liquidity will be part of the mainnet launch. By offering stablecoins and decentralized financing against all significant crypto assets, Kava Network also aspires to become the standard DeFi platform.
KAVA’s bullish incentive might be strengthened if the launch is successful, giving buyers a compelling argument to act quickly.
2. Rising public interest in Kava
Google Trends data indicates a growing interest in KAVA among the general population worldwide. As shown in the chart below, increased interest does not immediately cause a rise in prices. Evidence, however, points to the possibility that the two are correlated.
Jerry Goddard, a contributor to financial analysis, claims that there is a correlation with Bitcoin. However, the expert pointed out that consumer interest doesn’t always correspond to price increases. The price of KAVA won’t necessarily rise with the more public interest, but it could be a sign of growing investments even if there isn’t a direct correlation.
3. KAVA will bottom out soon
Although the token created a “descending triangle” with a flat support line, a descending resistance, and a significant mid-range, the KAVA technicals are not entirely bullish.
In most cases, the descending triangle is a continuation pattern, meaning that once the asset exhausts the pattern, it is likely to resume its initial bias. There may be additional suffering since the token dropped by 30% before the triangle formed. The target price for KAVA is currently $0.24, over 70% less than the current price.
The weekly chart went along with the verdict, displaying a likely support convergence near the specified target price and a fall in trading volumes. The value of the digital asset is also influenced by the price of Bitcoin.
If the flagship cryptocurrency bleeds more in Q4, the same is probably true for KAVA. Kava Networks will benefit if BTC decides to take action, though. A bearish market is typically a kind of opportunity to buy cheap and get higher returns. KAVA might therefore be a successful market launch for around $0.25.
