Kava Price Has Plunged From $9 to $0.69: What Next?

Kava price has been in a strong bearish trend in 2022 as concerns for the ecosystem worsened. The token plunged to a low of $0.6927, which was lower than its all-time high of $9.41. Its market cap has plunged to a low of more than $250 million. At its peak, Kava was valued at over $1 billion.

What is Kava and why is it plunging?

Kava is a leading blockchain project that focuses on the DeFi industry. It is platform that focuses on Decentralized Finance (DeFi) industry. The platform combines the speed and interoperability of Cosmos with the power of Ethereum. 

Cosmos is a leading blockchain platform that makes it possible for developers to build quality interconnected applications. Some of the top applications in Cosmos are ThorChain and Osmosis. Ethereum, on the other hand, is known for its stability as the biggest blockchain in the world.

According to Kava’s website, Kava has an average transaction fee of $0.0001. It has over 100 validators and over $2.5 billion in staked assets. Some of the top apps in the ecosystem were Curve, Akash, Binance, Chainlink, and Celer Network among others.

Kava price has plunged in the past few months as investors react to the crash of Decentralized Finance (DeFi). Data published by DeFi Llama shows that the total value locked crashed from more than $250 billion to about $59 billion. Historically, Kava does well when the DeFi industry is performing well.

Most DeFi protocols have seen their TVL crash by more than 80%. Curve’s DeFi TVL plunged to $3.9 billion while MakerDAO crashed to $6 billion. Therefore, there is a likelihood that Kava price will continue falling as the DeFi industry plunges. 

Kava price prediction

The daily chart shows that KAVA price has been in a strong bearish trend in the past few months. The token plunged below all moving averages while the Stochastic Oscillator moved to the oversold level. The MACD moved below the neutral point. It also moved below the important support level at $0.80, which was the lowest level on November 10.

Therefore, Kava will likely continue falling as sellers target the next key support level being at $0.60. A move above the key resistance point at $0.80 will invalidate the bearish view.