Kite [KITE] rallied in phases rather than a single spike. Price first respected a rising trendline near $0.16, forming higher lows toward $0.21. This base‑building period established stability before momentum expanded.
Bulls then pushed the price through the $0.24–$0.25 resistance zone, triggering a sharp advance toward $0.265–$0.268. The recent high near $0.2706 now acts as immediate resistance.
Source: TradingView
Simultaneously, the RSI surged to approximately 70.6, at press time, demonstrating robust momentum and a hint of short-term strain.
If the price weakens, the Fibonacci retracement levels provide downside markers. The 50% level stands at $0.1995, while the 61.8% level sits at $0.1808.
A deeper correction would expose $0.1200. For now, structure remains bullish as long as KITE holds above $0.25.
OI and Funding Rates confirm speculative conviction
Momentum accelerated further, delivering a 153.4% gain over 30 days, while spot traded near $0.265–$0.2685.
As the price climbed, trading activity intensified. 24-hour volume rose toward $192.8–$193.4 million, lifting market capitalization to roughly $477.56 million. This liquidity expansion signaled growing speculative participation.
Meanwhile, derivatives positioning amplified the move. Open Interest (OI) from $35 to $40 million. As momentum strengthened into February, OI breached $60 million, then accelerated toward $100–$120 million as price pressed $0.26–$0.27.
Source: CoinGlass
Furthermore, Funding dynamics added confirmation. Rates flipped persistently positive, with bursts reaching 0.03%–0.045% during upside expansions. The evidence indicates longs paid a premium to maintain exposure, reflecting a speculative conviction.
Brief funding compressions aligned with minor pullbacks, suggesting leverage resets instead of structural weakness.
This simultaneous rise signals fresh leveraged positioning entering the trend rather than a short-covering spike.
Together, rising prices, expanding OI, and elevated funding construct a leverage-supported breakout. While this fuels continuation potential, crowded long positioning increases liquidation vulnerability if momentum cools.
Can KITE sustain momentum above $0.27?
KITE now trades just beneath a dense resistance cluster between $0.277 and $0.2995, where liquidity concentration will decide continuation. If buyers secure sustained 4-hour closes above $0.27, upside momentum could extend toward the $0.30–$0.35 expansion zone.
Source: TradingView
However, RSI at 72 signals stretched positioning, meaning momentum must cool constructively rather than reverse sharply. Should MACD begin compressing while price stalls under resistance, leverage unwinds may trigger a pullback.
In that scenario, the $0.248 SMA becomes the first dynamic support, followed by structural demand near $0.23–$0.25. A deeper flush toward $0.183 remains unlikely unless market-wide risk aversion accelerates.
For now, continuation depends on volume persistence and resistance absorption.
Final Thoughts
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Momentum remains structurally intact, with leveraged participation and volume expansion reinforcing upside pressure despite crowded long positioning risks.
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Continuation hinges on reclaiming $0.27 resistance, while failure would redirect liquidity toward $0.25 support without breaking the broader bullish structure.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.