Kaito (KAITO) is up 13% in the last 24 hours; This is one of its strongest gains in recent sessions, largely due to an increase in buying activity in the market.
The question now is whether KAITO can sustain its rise in a market that has yet to fully recover; A rally taking shape as retail investors take control of the trend, while selling pressure slowly builds underneath.
Retail investors take over KAITO
Much of KAITO’s rise has been driven by retail investors, with data from the whale-retail delta pointing to a clear takeover in the market.
The whale-to-retail ratio measures which group is driving an asset’s trend; It turns green when whales dominate the action and turns red when retail traders dominate.
This means that whales have dominated for most of the year, with retail investors taking over the asset for the first time since January 14, with retail participation also directly fueling the rally.
However, early signs point to an increasing seller base, as spot market data shows selling pressure gradually increasing.
Data from CoinGlass, whose spot flow metric tracks these sales, recorded total sales of approximately $3.22 million against total purchases of $2.77 million. This difference between buyers and sellers leaves the spot net flow with a net outflow of approximately $447,580.
Although this move reflects profit-taking, it indicates that seller dominance has increased in the same period.
Continuous market triggers rally but risk increases
The continuous market emerged as the primary driver of the rally, with derivative activity dominating the move.
Open Interests in the continuous market increased by 15% in the last 24 hours and the balance reached $122 million at the time of writing as traders poured capital into the market.
The Funding Rate remains positive at 0.0021%, supporting this and indicating that most of the persistent market capital is held in long positions. However, this value is down from the previous day’s high of 0.0039% on July 18.
The decline indicates that long-term risk is decreasing as short contracts also increase, and the liquidation heat map warns that any pullback could fall well below current levels.
Liquidation heat map, which maps clusters of interest on the chart that tend to pull prices towards them. KAITO Where the cluster extends on the 24-hour time frame, it could drop to $0.78.
Rally could be a bull trap
Spot profit taking and the falling Funding Rate indicate that investors are positioning for an impending sell-off, raising the possibility that the rally is a bull trap.
A bull trap occurs when traders take a long position on an asset expecting an uptrend, followed by a large selling wave, triggering stop losses on these long positions.
It depends on the opinion KAITO token unlock soonIt will launch $15.84 million in assets on July 20, equal to 7.29% of its float, according to DeFiLlama’s tracking.
This increase in supply will change the supply-demand balance and reduce the pressure on KAITO, which will pose a significant risk to the long positions still open at that time.
Final Summary
- Retail investors took the reins on KAITO’s 13% rally; This marks their first real dominance of the asset since January, after months of whaling.
- Kaito’s rally remains on shaky ground after $15.84 million in tokens were unlocked on July 20 and investors quietly scaled back their bullish bets.
