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Kava (KAVA) Price Rallies 10% In 7 Days – Here’s Why

KAVA, the native token associated with the Kava platform, has experienced a whirlwind week regarding its price swing. The token, which began the week trading around $1.03, surged to $1.23 on May 23, driven by positive news within its ecosystem. 

However, the bull momentum was short-lived, with the token recently experiencing a significant price correction. Nevertheless, at the time of writing, KAVA is up 10% and is one of the top gainers in the crypto market within this period. 

Kava has experienced a significant price correction this week; source @tradingview

What’s Behind The Recent Spike In Kava?

However, it is important to analyze the factors behind this rally to assess its sustainability. Cryptocurrencies are known for their price volatility, and sudden reversals are not uncommon. In the case of KAVA, the token experienced a swift downturn following the initial surge, raising concerns about the solidity of the upward movement. 

Related Reading: Bullish Case For Litecoin Grows Stronger As LTC Halving Draws Close

This pattern is often observed when a rapid rise lacks strong fundamental support, leading to a correction as the market adjusts itself. In terms of recent developments, it was reported that the Digital Asset Exchange Association (DAXA) in South Korea removed investment warnings on KAVA and WAVES, the latter being another digital asset associated with the Waves platform. 

The warnings had been issued due to concerns about stablecoins linked to these assets, which were found to be “not normally linked to 1 dollar”. However, after a thorough review, DAXA determined that the risks associated with KAVA and WAVES had been resolved, allowing South Korean exchanges to resume deposit services for these tokens. This news likely contributed to the positive sentiment surrounding KAVA and may have played a role in the recent price rally.

In addition, the launch of the Kava 13 mainnet and the introduction of GameFi (Game Finance) and non-fungible tokens (NFTs) to the Kava ecosystem have also contributed to the positive momentum for the KAVA token. These developments have attracted attention and interest from users, investors, and traders, potentially driving the token’s price higher.

What’s Next For KAVA?

The price surge experienced by KAVA stands out as an outlier within the broader context of the cryptocurrency market. Considering the overall outlook, such gains may not be sustainable, and a subsequent correction could erase the entirety of the upward movement.

Related Reading: Upcoming Interest Rate Hikes Could Be The Next Big Challenge For Bitcoin, Here’s Why

If the current levels near $1.20 fail to provide sufficient support, KAVA/USD might retreat towards the support level at $1.10 or even lower.

Kava currently trading below the $1.20 resistance mark: source @tradingview

However, on the other hand, if there is an overall uptick in the market sentiment or if there is fresh, positive news specific to KAVA, it could potentially lead to renewed buying interest and push the price toward a retest of the recent highs. At press time, KAVA sells at $1.134 per token with a slight 0.9% 24-hour increase.

-Featured image from Kava.io, charts from tradingview.com

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KAVA Soars 31% This Week With Anticipation Of Mainnet Upgrade

KAVA, the utility token of decentralized blockchain Kava, has been on a strong bullish trend in the last few days. The cryptocurrency maintained this momentum despite the bearish market sentiment in the past week, garnering an impressive 31% price gain.

To end what was a largely positive week, a proposal to initiate the first phase of Kava Horizon was submitted by the Layer-1 ecosystem.

KAVA Price Overview

Recently, the KAVA token has been on a positive price rally, gaining more than 30% of its value in the last seven days. For long-term investors, this may be seen as some form of recovery, as the coin had not been performing well until a week ago.

To put this into perspective, the token has only increased by 1.6% in the past month. In fact, up until the 8th of May, the price of KAVA was on a steady decline, losing nearly 29% of its value in three weeks.

That said, an upward price movement that started a week ago has seen the token climb up to its previous high of $0.96. As of this writing, KAVA is valued at $0.969, tallying a 4.7% increase in 24 hours. 

KAVA

This latest price increase has been linked to the upcoming upgrade on the mainnet. Scheduled for 17th May, 2023 (15:00 UTC), the “Kava 13” upgrade aims to bring architectural enhancements to the security, scalability, and functionality of the network. Consequently, this will help developers to scale and accelerate their protocols and improve user experience across the ecosystem.

According to CoinGecko data, KAVA has a market capitalization of $495.5 million, which places it as the 90th largest cryptocurrency in the market. It is, however, worth noting that the token’s daily trading volume has dipped by 51.7% to $21.9 million in the last 24 hours.

Kava Submits Proposal To Initiate ‘Horizon’

On May 13, 2023, Kava advanced its plans to implement the first phase of the Kava Horizon. Codenamed “Proposal 141”, the proposal to initiate this change is now live for community voting. This proposal, if approved, will permanently end all emissions (including POS rewards, Rise rewards, grants, and other reward emissions) by December 31, 2023. 

However, before this is implemented, two independent foundations will be created to oversee the steady development and maintenance of the permissionless and decentralized blockchain. These two foundations will receive the bulk of emissions till they eventually cease at the end of the year. 

A future software upgrade – launched subsequent to proposal 141 – will control the flow of all accumulated rewards from the aforementioned foundations.