Kava Crypto Price Gets Overbought After Kava 12 Upgrade
Kava crypto price continued its recovery on Thursday even as other crypto prices recoiled. The token jumped to a high of $1.08, the highest point it has been since November 9. It has surged by over 102% from the lowest point in 2022. Also, Kava has jumped in the past 9 straight days, which is a positive thing for the crypto.
Kava DeFi TVL slumps
Kava is a leading blockchain that aims to become the best platform for developers to build decentralized applications (dApps). Its main benefit is that it combines the features of two of the most popular blockchains in the world: Cosmos and Ethereum.
Cosmos is one of the top blockchains that powers applications like Band Protocol, ThorChain, and Osmosis. It is known for its Interblockchain Communication (IBC) technology that it uses. Apps built in Cosmos are fast and extremely low cost. On the other hand, Ethereum is known for its stability and scale. It is the most popular blockchain in the world.
KAVA price has soared even as the total value locked (TVL) in its ecosystem retreats. According to DeFi Llama, the TVL has been in a downward trend in the past few months. It has moved from an all-time high of almost $700 million to about $197 million. Kava Mint, the biggest part of its ecosystem has seen its TVL slip to about $91 million.
Kava price has risen partly because of the release of Kava 12, a new upgrade. The new version of the blockchain has a revolutionary module known as x/kavamint that enables any Cosmos chain DAO to have control of their emissions. Also, Kava DAO community pool can hold a portfolio of assets instead of just $KAVA. Other features are the ability to burn assets based on usage parameters and the ability to cap total supply based on KAVA Dao.
Kava crypto price forecast
In April 2022, I wrote that Kava could be the next big thing in crypto. Well, that has not happened. Turning to the daily chart, we see that Kava crypto price has been in a strong bullish trend in the past few weeks. It has now moved to the second resistance of the standard pivot point. The 25-day and 50-day moving averages have continued rising while the MACD has moved above the neutral point. At the same time, the Relative Strength Index (RSI) has continued rising.
Therefore, Kava price will likely continue rising as buyers target the key resistance level at $1.5, which is about 40% above the current level. A drop below the support at $0.85 will invalidate the bullish view.