Analyst Explains Why KAVA Could Rise Further Atop Its 170% QTD Rally
- DeFi token KAVA has caught investors’ attention following its 170 percent rally in the third quarter.
- Luke Martin, a cryptocurrency analyst, listed two reasons why KAVA/USD should continue its bullish momentum in the coming sessions.
- One of them is its potential listing on US-based crypto trading platform Coinbase Pro.
KAVA is trading 170 percent higher on its quarter-to-date timeframe – and the emerging DeFi token has significant growth potential in the sessions ahead.
So sees Luke Martin, a cryptocurrency analyst, who gave two reasons why KAVA price could keep rising in the coming future. First, he backed his bullish belief by referring to Coinbase Pro, a US-based crypto trading firm that recently mentioned KAVA among the tokens it may want to list on its platform.
Second, Mr. Martin highlighted the euphoria among KAVA traders following Coinbase Pro’s announcement last week. The analyst called them out for pumping the cryptocurrency’s rate above a crucial resistance area, a move that could set it en route towards new quarterly highs.
KAVA/BTC exchange rate jumped above the red resistance area on Thursday. Source: TradingView.com
The BAND Reference
The performance of BAND token under similar conditions prompted Mr. Martin to predict the same scenario for KAVA, he admitted in a tweet.
“I’ve been skeptical about the “Coinbase effect” for altcoins,” the analyst wrote. “But that has completely changed in the current market. $BAND ripped for 45% when it got added yesterday. I think there’s a really attractive trading opportunity for the other potential adds on their list.”
Both BAND and KAVA are DeFi tokens. Both serve as collateral to issue dataset tokens, stake to participate in on-chain governance. Their common features make it further possible for Coinbase Pro to list KAVA on its platform, just as it has listed BAND.
“They have never added 100% of coins they review so blindly buying all likely isn’t [the] best approach,” Mr. Martin commented about Coinbase Pro. “Based on the $BAND‘s [addition], I give more weight to a Defi coin being picked.”
KAVA Upside Targets
Meanwhile, the KAVA/BTC breakout above its resistance area of 26,600-27,738 sats clears its path towards its all-time high.
At first, the pair is clearly attempting to move above its Bull Pennant pattern. One can notice a high selling pressure near the local top via the large upside wick. Meanwhile, bulls are buying the pullback move while trying to attempt a close above the Pennant range.
In case of a pullback, KAVA/BTC risks falling towards the Pennant support, following which it would attempt another bull run towards and above the Pennant resistance. In case of a full-blown breakout, the pair would jump towards the 31,183-38,950 sats target.