KAITO’s Price Dynamics and Bitcoin’s Influence

Recently, KAITO faced a minor setback from its all-time high (ATH) of $2.92, achieved just two days ago. Currently, it is striving to reclaim that level, but prevailing market conditions are applying downward pressure.

The recovery trajectory of KAITO significantly hinges on Bitcoin's performance, as both cryptocurrencies are showing a growing correlation in their price movements.

KAITO Requires Market Support

The increasing correlation between KAITO and Bitcoin suggests that the altcoin's price trends are closely mirroring that of BTC. This correlation uptick implies that as Bitcoin's activity fluctuates, so too will KAITO’s pricing.

As Bitcoin rebounds from its intra-day low of $78,250 and currently trades at around $84,719, the market sentiment may shift positively. Should Bitcoin maintain its upward movement, KAITO could potentially see a price increase, assuming their correlation continues to strengthen.

However, traders remain skeptical despite this possible upward momentum. The rise in KAITO’s negative funding rate over the past 24 hours indicates a significant number of traders are betting against the altcoin.

A dominance of short contracts over long positions is evident, demonstrating traders’ hesitance to fully endorse KAITO’s recovery at this time. These mixed signals from market sentiment harbor uncertainty, which may hinder KAITO’s price progression in the short term.

KAITO Pricing in Transition

Currently, KAITO's price sits at $2.22, just shy of the resistance level at $2.26. While the overall market conditions seem conducive for a recovery, traders are exercising caution.

Efforts by KAITO to overcome this resistance are underway. Nevertheless, ongoing negative funding rates may impede its capacity for further gains.

Given the current state of affairs, KAITO is likely to fluctuate within a defined range between $1.86 and $2.44 in the immediate future. This consolidation might indicate that the altcoin could struggle to surpass the critical resistance of $2.44.

If KAITO successfully breaches $2.44, it would open the door for a potential rally, possibly enabling it to break its ATH of $2.92 and even surpass the $3.00 mark.

Failure to overcome the $2.44 resistance could result in KAITO remaining confined below this price, retaining its position within a narrow trading range. A downturn below $1.86 would further weaken the bullish outlook, potentially marking a continuation of the downtrend.