KITE [KITE] is on the verge of clearing all recent losses amid a sector-wide rally. After falling to a low of $0.09, the altcoin reclaimed $0.10 and closed with higher highs, eventually breaching $0.13 resistance to hit $0.14 before retracing. Trading around $0.13, KITE is up 8% on the daily charts with a 106% surge in trading volume to $44 million. However, despite the price hike flipping the 20-day EMA and signaling a potential trend reversal, sellers dominate the derivatives market. Perpetuals sell volume exceeded buy volume, and futures outflows remained negative, indicating a risk-off sentiment that could challenge the rally.
KITE [KITE] is on the verge of clearing all recent losses amid a sector-wide rally. Since falling to a low of $0.09 and reclaiming $0.10, the altcoin has closed with higher highs.
As a result, it held the $0.11 support, breached $0.13 resistance, and climbed to $0.14 before retracing. As of this writing, KITE was trading around $0.13, up 8% on the daily charts, with trading volume jumping 106% to $44 million.
With the price hike, KITE flipped the 20-day EMA, suggesting the likelihood of a sustained trend reversal. Its Normalized Smoothed MACD formed a bullish crossover and rose to -0.38.
However, the NSM remains within the negative zone, indicating the trend has yet to fully flip bullish. While demand-side activity has shifted, sell-side activity remains extremely elevated.
Despite the upside momentum, sellers are still dominating the market. On the derivatives side, traders have shown no appetite for risk, as KITE saw over 18.3 million in perpetuals sell volume compared to 15.7 million in buy volume.
The net buying here remains negative at -11 million, with daily delta also negative at -3.4 million. The situation suggests more investors have aggressively exited their positions, with futures outflow further confirming this bearishness.
KITE’s futures saw $13 million in outflows compared to $12.8 million in inflows. The futures netflow dropped 14% the past 24 hours to -$442k, remaining negative over the past days.
Even as KITE is rising, it still faces a major hurdle. If the pressure continues, KITE could fall below $0.1312 and revisit $0.11 support, but if bulls increase pressure while selling cools down, the altcoin will seek to flip $0.147 resistance.
