KDA recently launched a wrapped version of its token called wKDA, which operates on the Ethereum network and allows it to interact with all Ethereum Virtual Machine-compatible decentralized finance (DeFi) protocols.
The Kadena token (KDA) is a digital currency that is used to pay for computation on the Kadena public chain. Similar to ETH on Ethereum, KDA on Kadena is the token in which miners are compensated for mining blocks on the network.
Let us see what the technical analysis of KDA indicates:
A 10-day long bull run ended on November 11, 2021, when the trend reversed itself. The past month witnessed a historic increase in the price, after which a correction can be seen. The downtrend is continuing to date, showing regular lower lows and lower highs.
On November 16, 2021, KDA Opened at $19.34. On November 22, 2021, it closed at $16.95. This was a weekly change of -12.35%. Moreover, the current 24-hour low is $15.98, while the 24-hour high is $18.88.
The ongoing downtrend is continuing today as well. The KDA token is trading 0.94% lower than the previous day's close. The negative momentum of the price is expected to continue in the coming days.
The OBV is showing a downwards moving line. This means that the buying pressure is continuously being dominated by the selling pressure. This signals the likelihood of a further decline in price.
The RSI has slowly reached near equilibrium, signaling that both the bulls and bears have equal strengths. This is a neutral signal, and the traders may hold their current positions based on this.
Both the MACD line and the Signal line in the MACD graph are negative. There is no divergence of the MACD graph from the price chart, either. This is a negative signal for the traders.
It looks like KDA has benefited from the recent cryptocurrency rally wherein the largest cryptocurrencies in the world traded close to their all-time high, including Bitcoin, Ethereum, and others. The two-month track record of the Kadena coin is impressive for investors.
Thus, the oscillators are suggesting that the traders may consider exiting the market at this point as the price is expected to move downwards in the coming days. However, if they decide to hold their positions, they may keep a stop-loss at $13. Considering the possibility of a trend reversal, traders may also target the price to reach $20.
Owing to the downtrend, the price has dropped below all the current Fibonacci levels.