Kava Brushes Off Market Downtrend, Gains 11% On Weekly Chart
KAVA is one of the Layer-1 blockchains in the crypto industry with links to two top blockchains, Ethereum and Cosmos. The network combines the Cosmos blockchain, and the EVM technology boosting its speed, security, and maximum scalability. It also utilizes the developer support of the Ethereum network.
As such, Kava supports cross-chain interoperability, allowing users to transfer assets between Cosmos and Ethereum ecosystems. Kava’s native token, KAVA, which powers all the transactions on the blockchain, currently sits at the 62nd position on Coinmarketcap rankings.
At the time of writing today, July 12, KAVA’s market cap stands at $661,668,155, showing an increase of 5.95%. Also, the coin has recorded more gains in 7 days than other top coins like Bitcoin and Ethereum, showing losses in their weekly gains.
KAVA Posts Positive Price Moves Amid Plummeting Trading Volume
KAVA’s price stands at $1.06, depicting a gain of 5.51% in 24 hours, while the weekly price shows an 11.31% increase. But KAVA’s trading volume currently stands at $59,625,037, a decline of 22.88%. This is unexpected, given the increasing price gains.
Looking at the declining volume, trading activities with KAVA show low participation. Also, the global market Fear & Greed Index is currently at 57, depicting Neutral. As such, the current gains on KAVA may not be sustainable.
Also, KAVA’s daily chart on TradingView, shows that the RSI is at 62 moving towards the overbought region of 70. Such a movement suggests a trend reversal to the downside once the asset reaches the overbought region.
So while traders might be encouraged by the greenish moves today, represented by KAVA’s trend above the 50-day moving average, they should be careful, given the possibility of a downtrend soon.
Network Upgrade And USDT Launch Might Be Pushing KAVA
Many factors affect the prices of crypto assets. Some of these factors include market-wide sentiment, network developments, news, regulations, etc. Regarding KAVA’s price gains today, network developments and events are seemingly responsible for it.
The much anticipated Kava 14 blockchain upgrade is slated for today, July 12, at the block height of 5,597,000 at 3:00 p.m. UTC. GitHub reveals that the release will facilitate the seamless unlocking of Cosmos native assets on Kava EVM. Not only that, it will support the conversion of assets between Ethereum and Cosmos through a safer new internal bridge feature.
Six days ago, USDT launched on Cosmos through Kava. Even though the launch expanded the Cosmos DeFi Ecosystem, it also brought Kava to the limelight.
Kava Co-founder Paolo Ardoino, talking about the integration, said, “Our support for Tether’s USDt integration unlocks much-needed stablecoin liquidity across the Cosmos and EVM ecosystems. Tether’s choice makes Kava a key support and a strong ally for Cosmos ecosystem projects building out the Internet of Blockchains.”
Read more: https://www.newsbtc.com/altcoin/kava-brushes-off-market-downtrend/
Text source: NewsBTC
