KAIA recorded the highest gains in the past 24 hours, as the number of transactions reached a new high.
Off-chain market activity suggests that a potential drop could be on the horizon.
In the past 24 hours, Kaia [KAIA] posted the biggest gain with a 16% move to the upside, bringing its monthly increase to 70%.
Market analysis indicates that while continued upward momentum is supported by on-chain activity, off-chain selling threatens that trend. Here’s how the situation may play out for KAIA.
On-chain activity turns bullish
KAIA’s price surge comes amid a recent rise in transaction activity that has driven momentum in the past few days.
The Unique Address Count has reached a new monthly high after declining throughout the previous month.
Source: Kaiascan
At the time of writing, the Unique Address Count had risen to 735,997. This increase in new users appears positive, particularly after the previous slump—implying these addresses likely purchased KAIA from the market.
AMBCrypto investigated further and found more details about these addresses. Analysis revealed that many of them were likely liquidity providers in the decentralized finance (DeFi) market.
DeFi traders pump $3M+ into KAIA
Liquidity inflow into DeFi protocols has surged, with the Total Value Locked (TVL) rising by 7%. TVL measures the net liquidity flow into blockchain protocols over a given period.
Source: DeFiLlama
Until press time, the TVL rose by $3.15 million to reach $41 million, suggesting that investors have deposited more KAIA.
Simultaneously, trading activity across DEXes spiked as KAIA’s Trading Volume hit a monthly high of $1.86 million.
This momentum, building up over the past month, pushed total DEX Trading Volume up by 69%, reaching $16.35 million.
Source: DefiLlama
This continued growth in DeFi activity implies two key points: a portion of these active addresses appear to hold a long-term outlook for KAIA, and KAIA is seeing increased use for facilitating transactions.
However, while on-chain activity points to a potential rally for KAIA, off-chain trends tell a different story.
Can KAIA reclaim $0.20, or drop back to $0.17?
AMBCrypto analyzed crypto exchange activity—representing off-chain sentiment—to assess whether KAIA can retest its $0.20 level, last seen in January.
Using the Liquidation Heatmap, analysts found that despite strong on-chain support, KAIA may face a price drop. The Heatmap identifies liquidity clusters on the chart—price levels that often act as magnets during trading.
Source: CoinGlass
Currently, these clusters are concentrated below the current price, with some reaching as low as $0.17. If these price magnets are strong enough, a decline remains likely.
In the derivatives market, the Open Interest Weighted Funding Rate has dropped sharply, reaching -0.0345%.
Source: CoinGlass
This suggests that derivative traders expect a major price drop, as most open contracts are positioned to profit from a fall.
Given this prevailing bearish sentiment, KAIA’s chances of reclaiming its January level of $0.20 or higher remain slim.