- Kaia registered the highest profit in the last 24 hours, because the number of transactions reached a new high.
- Off-chain market activity suggests that a potential decrease could be on the horizon.
In the last 24 hours, Kaia [KAIA] placed the biggest profit with a switch from 16% to the front, which brought the monthly increase to 70%.
Market analysis indicates that although the constant upward momentum is supported by activities on chains, the sale of off-chains that threatens trend. This way the situation can take place for Kaia.
Activity on the chain becomes bullish
The price butt of Kaia comes in the midst of a recent rise in transaction activity that has been driven to the momentum in recent days.
The unique address number has reached a new monthly high after the past month.
Source: KaiSascan
At the time of writing, the unique address number had risen to 735,997. This increase in new users seems positive, especially after the previous slump – the implication of these addresses probably bought Kaia from the market.
Ambcrypto further investigated and found more details about these addresses. Analysis showed that many of them were probably liquidity providers in the market for decentralized finance (Defi).
Defi traders Pump $ 3 million+ in Kaia
Liquidity inflow in Defi protocols has risen, with the total value locked (TVL) by 7%. TVL measures the net liquidity flow to blockchain protocols for a certain period.
Source: Defillama
Until the time the TVL rose by $ 3.15 million to reach $ 41 million, which suggests that investors have deposited more Kaia.
At the same time, trading activities in Dexes withdrew as the trade volume of Kaia a monthly high of $ 1.86 million.
The momentum, built up in the past month, pushed the total DEX trade volume by 69%by 69%and reached $ 16.35 million.
Source: Defillama
This continuous growth of Defi-activity implies two important points: some of these active addresses seems to have a long-term preliminary look for Kaia, and Kaia sees more use to facilitate transactions.
Although activity on the chains points to a potential rally for Kaia, off-chain trends tell a different story.
Can Kaia reclaim $ 0.20 or go back to $ 0.17?
Ambcrypto analyzed crypto exchange activity-reflective off-chain sentiment-to assess whether Kaia can test $ 0.20 level again, last seen in January.
With the help of the liquidation warmth, analysts found that, despite strong support at the chain, Kaia could get a price decline. The Heatmap identifies liquidity clusters on the graph – Price levels that often work as magnets during the trade.
Source: Coinglass
These clusters are currently concentrated under the current price, with some reaching as low as $ 0.17. If these price magnets are strong enough, a decrease remains probably.
The open interest -rate financing percentage has fallen sharply in the derivatives market and reached up to -0.0345%.
Source: Coinglass
This suggests that derivatives traders expect a great price decline, because most open contracts are positioned to take advantage of a fall.
In view of this prevailing bearish sentiment, the chances of Kaia remain to reclaim his January level of $ 0.20 or higher.