Klaytn, an open-source Layer-1 blockchain, showed significant bullish movements and has been performing well this month. Climbing above the key moving averages, the token has climbed up as massive vertical price rally was observed on the chart.
Last week, the token escaped beyond the declining trendline barrier of $0.1400 and plotted a bullish breakout. Afterward, the token gained follow-on buying momentum and rose by over 40% in the last two weeks.
The reason behind the significant bullish traction is the expectation of the Kaia mainnet release at the end of August. Kaia will offer numerous enhancements that will support smart contracts based on EVM and CosmWasm at the same time.
In addition, buyers are looking to forward the breakout rally and anticipate an upward movement ahead. A daily close above the $0.2000 mark would trap the seller army, and a short covering move could be seen ahead.
Klaytn Bulls Entered the Market: What Lies Ahead?
KLAY has been reflecting bullish pressure since early August and has soared more than 30% so far. At the time of writing, it was trading at around $0.176 with an intraday gain of over 2.30%, witnessing bullish cues.
After bouncing from the $0.1200 support level in the first week, KLAY managed to form a V-shaped reversal and a sharp rebound. However, the breakout and retest formation were done, and the token might continue to spread the bullish movement in the coming sessions.
KLAY Price Chart Source: Santiment
Investor optimism and growing demand was observed which fueled the price rally. As the KLAY value increases, investors see the potential for higher returns, attracting more capital into the KLAY ecosystem.
In his tweet, crypto analyst World of Charts (@WorldOfCharts1) noted that KLAY saw a breakout and retested the trendline mark. It might continue to rally ahead.
Tweet by @WorldOfCharts | Source:X
The RSI stood around 62 at press time, depicting a bullish edge. However, buyers should look for a potential close above the $0.1800 mark to gauge the chances of a rally in the coming days.
Social Dominance Data Saw a Massive Spike
The rising social dominance data indicates increased discussions and excitement surrounding KLAY. It is typically a sign of growing interest and can lead to a broader adoption of the network and its services.
Social Dominance Data Source: Santiment
However, the weighted sentiment line was still below the zero line, conveying the stable investors’ interest in the token.
Futures Open Interest Data Overview
Over the past 24 hours, a significant long buildup activity was observed. Its Open Interest surged over 4.90% to $16.50 Million.
Futures Open Interest Data Source: Coinglass
Moreover, $22.30k shorts were liquidated, whereas only $2.09k longs were liquidated, further strengthening the bullish sentiment. The immediate support level to watch is near the $0.1500 mark (50-day EMA).
If KLAY fails to hold this level, it might revisit the $0.1320 mark in the coming days, while if the bulls continue to exert pressure and move above the $0.1800 mark. It could go toward the $0.2000 mark followed by $0.2200 soon.
