The KAIA/USDT pair on the 4-hour timeframe is displaying a compelling technical setup following its recent correction from the 0.21 highs. After a strong rally from 0.11 to 0.21 in mid-June, the pair has pulled back to test the critical support confluence around 0.16-0.17, where multiple technical factors are converging to potentially halt the decline.
Current Market Structure:
Price is currently consolidating around 0.1823, sitting just above the lower boundary of the Ichimoku cloud and near the 10-day VWAP (green line). This area represents a crucial decision point for the pair's next directional move. The recent price action shows signs of stabilization after the sharp pullback, with diminishing selling pressure evident in the latest candlesticks.
Technical Indicators Analysis:
The RSI has cooled from overbought levels and is now in neutral territory around 45, providing room for upward movement without immediate resistance from momentum indicators. The Ichimoku cloud structure suggests the bullish trend remains intact on higher timeframes, with the current pullback potentially representing a healthy correction within the larger uptrend.
Trade Setup:
Entry: Consider long positions on a break above 0.185 with volume confirmation
Target Levels:
1st Target: 0.195-0.200 (previous support turned resistance)
2nd Target: 0.210-0.215 (recent highs retest)
Risk Management:
Stop Loss: Below 0.165 to protect against a breakdown of the support confluence
Risk-Reward: Favorable 1:2+ ratio given the proximity to support levels
Alternative Scenario:
A break below 0.165 would signal continuation of the correction toward 0.14-0.15 levels, where longer-term support may emerge. Monitor volume and momentum for confirmation of any breakdown.