CryptoKarat has increased by 40% – can KAT break the resistance of $0.002?
KAT surged over 40% in one day, but there is uncertainty regarding its potential for sustainable improvement.
KAT has experienced significant pressure with a rise of over 40% in one day. However, the likelihood of sustainable improvement remains uncertain.
Karat [KAT] has shown notable market activity with a trading volume of $52,172.73 in the past 24 hours, reflecting a substantial 345% increase compared to the previous day.
Currently, KAT’s price is 20.14% above its lowest point, indicating a rise of over 40% in the last 24 hours, trading at $0.000549 at the time of publication. This increase in trading volume and price suggests growing interest and activity in the market.
Indicators suggest that KAT may be undervalued.
For context, KAT tokens are available for trading on both decentralized and centralized exchanges. The most popular exchange for buying and trading Karat is SyncSwap, where the most active trading pair, KAT/USDC, had a trading volume of $225.73 in the last 24 hours.
Despite the initial optimism, KAT has faced a significant retracement, leading to over a month of consolidation. On the daily price chart, KAT’s next challenge is to overcome the resistance at $0.001 before targeting the previous rejection at $0.002.
Source: TradingView
While the increase in trading volume boosts confidence in KAT’s future value, key indicators suggest it may be undervalued, as indicated by the declining RSI.
Simply put, an RSI below 40 typically indicates that the token is oversold, suggesting that investors are not recognizing potential future profits and are exiting amid market volatility.
Similarly, a significant drop in the CMF indicates a lack of capital entering the market. However, optimism continues with an increase in OBV, indicating that daily active trading is on the rise, likely bolstered by a slight increase in Bitcoin.
For price improvement, AMBCrypto has identified conditions that must align with an increase in trading volume. If these conditions signal bullish trends leading to a rise in RSI and CMF, a correction may be on the horizon.
A Change in Sentiment is Needed
If bulls intend to establish KAT near its all-time high (ATH), changes across several sectors are essential.
First, the 180-day chart below shows an increase in volume coinciding with Bitcoin’s bullish movement in early August. However, since then, the total network volume of Karat has significantly decreased from $128,000 to less than $50,000 currently.
Source: Santiment
Furthermore, the increase in volume coincided with a shift in positive sentiment, allowing KAT to test the resistance at $0.002. However, despite a fourfold increase in volume, sentiment has now shifted into negative territory.
The lack of positive sentiment may undermine recent bullish efforts to counter the retracement that has seen the token rise by 40%. If this sentiment remains unchanged, it could jeopardize any potential price increases.
Overall, a definitive price improvement seems unlikely. If bulls show a bit more aggressiveness, it may lead to a slight increase. However, the ascent to the resistance at $0.002 currently remains out of reach.
