The cryptocurrency Kite [KITE] surged nearly 14% in 24 hours, recovering part of a recent sharp decline. The rally stemmed from a retest of a key rising trendline support, though derivatives data showed cooling speculative interest and cautious positioning among traders, preventing a decisive bullish call.
The price of Kite rebounded sharply, reversing part of a prior pullback and shaking short-term market sentiment. Despite this move, the broader daily structure remained contested rather than decisively bullish.
On the daily chart, KITE’s price respected a rising trendline support that has been in place since the 6th of February. This trendline previously triggered multiple reactions, each followed by short-term recoveries rather than sustained breakdowns.
Momentum indicators pointed to easing sell-side pressure, as the Stochastic RSI showed momentum stabilizing after dipping toward lower bounds. This setup often preceded short-term corrective rallies, though it did not confirm a full trend reversal yet.
Derivatives data reflected cooling speculative activity, with Open Interest falling by roughly $32 million to about $85 million. This contraction signaled position closures during the recent decline rather than aggressive chasing of the rebound.
At the same time, the Long/Short Ratio hovered near 0.75, showing shorts still slightly outnumbered longs. Funding data added nuance, with the Aggregated Funding Rate staying below its predicted level, hinting at relatively cautious leverage positioning.
KITE now sat at a pivotal technical zone where trendline support was being tested. For now, the strong reaction off that support kept the near-term bias tilted toward the bulls, but confirmation remained pending.
