Why is Kite Surging and How High Will it Go?

Kite has been on a sustained rise, reclaiming several key levels. At the time of writing, it appears the uptrend is not ending soon.

On Monday, it opened at $0.21 and surged to a high of $0.24, its first since March. Aside from its recent milestone, it is also trading up by almost 11%. At its peak, it was up by over 13%.

It is one of the top gainers over the last 12 hours, which is surprising as the rest of the market is currently grappling with notable selling pressure following the recent shift in fundamentals. The global cryptocurrency market cap is at one of its lowest levels in the last 14 days, raising questions about why the asset is surging.

It’s worth noting that the current uptrend didn’t start on Monday; it began on May 6. Looking at the event, one key factor drove the upward momentum: the launch of Kite’s mainnet.

Kite has been operating as a testnet for an extended period. The project announced the launch of its mainnet on April 30, marking a transition to a standalone layer-1 blockchain.

It also announced the introduction of the Agent Passport component, which makes the project operate at the intersection of AI and blockchain infrastructure. It delivers identity and payment solutions tailored for autonomous AI systems.

The transition to a chain and the launch of its agent passport mean that its autonomous AI agent payments are available for real-world use. It has since served this purpose, evidenced by the sustained uptrend.

However, it is common knowledge that the uptrend will end; the question is when and how high the asset would have reached before it retraces.

Kite Gears up Massive Hurdle at $0.255

Kite is currently experiencing notable selling pressure. It faced rejections at $0.241 and has since struggled to hold $0.24. On the 4-hour chart, several factors are driving the recent decline. One such is that the asset is overbought. Additionally, it broke out of the bollinger bands and was due for retracement.

Nonetheless, the altcoin may resume its uptrend in the coming hours. The MACD recently had a bullish crossover, suggesting a higher likelihood of a continuation.

The 1-day chart offers more reasons to believe the recent decline may be short-lived. Kite’s recent rejection happened at a level many will consider insignificant, as previous price movements show no prior retracement around it.

However, its recent hike is not far from a tough barrier. Between Mar 24 and 26, it grappled with significant selling pressure at $0.255. On two occasions, it tested the mark and retraced. The first resulted in another retest, but the second marked the end of the uptrend.

In a nutshell, $0.255 is an established resistance level and the last stop for the recent uptrend. It means that the asset will likely rebound and retest this mark before retracing.

Based on previous price movements, KITE will likely not get past ths barrier. The relative strength index shows an increased likelihood of playing as it trends at 78, indicating that it is overbought and due for corrections.

In hindsight, the asset gained over 60% in the last twelve days. It may be gearing up to add another 6%.

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