According to reports from AMBCrypto, Kaito [KAITO] has been experiencing significant downward pressure over the past week, losing approximately 57% of its accumulated gains. The asset continued this decline with an 11% drop in the past day, as reported by AMBCrypto. This sustained decline has been characterized as whale-driven, with the whale retail delta remaining around 0.242 on the chart. Whales appear to be selling the asset until they consider it reaches fair value, suggesting they view the current price as overvalued.
As reported by AMBCrypto, a significant token unlock event is scheduled for August 20th, which could intensify selling pressure on the asset. The unlock will release 32.6 million KAITO tokens to the market, representing 3.26% of the total token supply. According to AMBCrypto, when demand remains limited following an asset's token unlock, its price tends to decline notably. The assumption is that investors are selling their KAITO holdings ahead of the unlock to avoid absorbing larger losses after the unlock occurs.
According to AMBCrypto, the token holders chart has remained largely flat over the past week, implying that few new holders have entered the market to purchase KAITO. This confirms that whales are not completely selling their KAITO holdings but are instead selling a portion of their wallets, possibly to maintain exposure to the asset. The report indicates that sentiment across the crypto market remains broadly bearish, which could contribute to continued selling pressure on the asset.
As reported by AMBCrypto, perpetual market data reveals significant warning signals for bullish traders. The gap between short and long position losses has widened to a 21-fold difference, with long positions recording total liquidations of roughly $767,190 compared to short positions seeing losses of $35,340. This substantial disparity suggests that optimistic traders may need to exercise caution before taking long positions on the asset.
