When talking about the technical analysis let’s start from the weekly time frame and understand the anatomy of the candle, the price of Kadena (KDA) is now around the weekly mitigation block and has shown a great reaction of it. Moreover, if we draw the Fibonacci from the last Lower High to the Lower low, the level of 61.8 aligns with this mitigation block with serves as a confluence to this level. Now the demand pattern which was sitting at between $5.3991 to $8.4063 was turned down from the coming supply which makes this supply of KDA in control. This supply zone is also at the same level on the Lower Time frame as it’s not too visible on the weekly time frame.
Moving down to the Daily Time frame, Structure wise we still are in a downtrend, as the last Lower High is still intact and just from that the price of KDA recently showed a reaction. This recent was an almost full retracement of the impulse which was due to BTC as it pumped much recently. As BTC has a high influence over other alts, this resulted in a pump in this coin as well but overall the structure is still downwards. Now as BTC tapped into a daily FVG and has shown a great reaction, that shows short bias, so with that understanding, the short on this coin seems reasonable. There is some liquidity at $4.3828 as well which can drive the price downwards.
Point of Interests – Kadena (KDA)
Moving to the 4 Hour Time Frame, the price of KDA has formed a bearish DOJI pattern which is a reversal pattern. If such patterns are formed not within a zone, that is probably a continuation pattern, otherwise, If these are formed in any Specific zone, which is Order Block in this case, that shows a reversal pattern. The price also has left some imbalance while it was pushing upside which acts as a magnet and price can drive down because of that.
Talking about the premium and Discount areas, if those are drawn, the price of KDA is clearly is a premium pricing which prefers to short only. That is a very simple rule which is to sell high and buy low and the price of KDA has clearly made a Lower High so it’s good to sell and longs shall be avoided. Now if this zone gets violated which is at $10.9392 this whole scenario would get violated. Talking about the targets, the liquidity which was mentioned above can serve as a target.
