According to CoinWorld News:
KAT has seen significant momentum, surging over 40% within a day. However, the sustainability of this recovery remains uncertain.
Karat [KAT] has displayed notable market activity, with a trading volume of $52,172.73 in the past 24 hours, representing a 345% increase from the previous day. Currently, KAT’s price is 20.14% higher than its historical low, reflecting an increase of over 40% in the last 24 hours, with a trading price of $0.000549 at the time of writing. This surge in trading volume and price indicates growing interest and activity in the market.
Indicators suggest KAT may be undervalued. In context, the KAT token can be traded on both decentralized and centralized exchanges. The most popular exchange for buying and trading Karat is SyncSwap, where the most active trading pair, KAT/USDC, saw a trading volume of $225.73 in the past 24 hours.
Despite initial optimism, KAT still faces the risk of a significant pullback, resulting in over a month of consolidation. On the daily price chart, KAT’s next challenge is to overcome the resistance at $0.001, then aim for a previous rejection at $0.002. Although the surge in trading volume has bolstered confidence in KAT’s future value, key indicators suggest it may be undervalued, as indicated by the declining RSI.
Simply put, an RSI below 40 typically indicates that a token is oversold, suggesting that investors may not be recognizing potential future gains and are exiting during market fluctuations. Similarly, the sharp decline in CMF indicates insufficient capital entering the market. However, with the rise in OBV, optimism remains, indicating that daily active trading is increasing, potentially fueled by a slight surge in Bitcoin.
To achieve a price rebound, AMBCrypto has identified conditions that must align with the growing trading volume. If these conditions signal a bullish trend, leading to increases in RSI and CMF, a correction may be on the horizon.
Sentiment needs to change. If the bull market aims to rebuild KAT near its original ATH, several quarters of change are essential. Firstly, the chart for the last 180 days shows a surge in trading volume, aligning with Bitcoin’s bullish trend at the beginning of August. However, since then, the total traffic on the Karat network has sharply declined from $128,000 to currently less than $50,000.
Moreover, the surge in trading volume coincides with a shift in sentiment, allowing KAT to test the resistance at $0.002. However, despite a fourfold increase in trading volume, market sentiment has turned negative. The lack of positive sentiment could undermine the recent bullish efforts made to counteract the pullback that caused the token to surge by 40%.
If this sentiment remains unchanged, it could jeopardize any potential price surges. Overall, a price recovery is unlikely. If bulls show more aggression, they may trigger a slight surge. However, currently, it remains unable to rise to the resistance level of $0.002
