KAITO emerged as the second-biggest weekly winner with an 18% rally, though the token is now showing a more typical cooldown phase with a 3% intraday decline as selling pressure intensifies. According to latest market data, the weekly performance pushed the token into the $1.15 resistance zone, with the latest move bringing KAITO back toward the $1 level as a pullback appears likely. Despite the current correction, the token's weekly rally demonstrates strong momentum that could provide support for any further downside movement. The intraday decline follows the token's testing of critical support levels, with KAITO currently trading around $1.01 after reaching a new low for the day in recent sessions.
On-chain activity has flagged significant developments with two freshly created OKX-funded addresses recently opening cumulative $6.94 million in 5x long positions on Hyperliquid, putting roughly $7.106 million in combined volume behind the trade. According to PANews and on-chain analyst Ai Yi monitoring, both positions are currently sitting on a paper loss near $991,000 given today's drop, yet neither has been closed out, which some traders are reading as a sign of conviction that this pullback is temporary rather than a trend change. These two addresses have become the top 1&2 sized positions in KAITO, with the margin sources both coming from OKX, suggesting substantial institutional backing behind these positions. This substantial commitment from large traders suggests they believe the current decline represents a temporary correction rather than a fundamental shift in KAITO's trajectory, though the outcome will depend on whether the token can maintain its trendline support.
Price action on the 4-hour chart shows KAITO at $1.01 inside the Bollinger Bands, testing toward lower support at $0.98 while upper resistance sits at $1.26. The EMA50 at $1.12 functions as near-term resistance and the EMA200 at $0.9 as deeper support, with RSI at 39.99 and MACD at -0.02 confirming a death cross that points to a likely retracement toward the 50-EMA before any sustained move higher. KAITO is now testing its rising trendline on the daily chart near $1.00, representing a pivotal moment for the token's near-term outlook. The technical indicators suggest the token may face continued pressure until it can establish a clear directional move. However, RSI cooling back into the neutral zone after previously entering overheated territory provides some technical support for potential recovery, with a breakout toward the $1.50 level this month still possible if bulls step in.
Liquidation data tells a more nuanced story about market positioning, with 24-hour liquidations hitting $1.43 million, though the distribution between longs and shorts shows interesting dynamics. As reported by AMBCrypto, longs bore the bigger share at $944.86K against $485.36K in shorts, indicating that long positions were more vulnerable during the initial sell-off. However, the 4-hour window flipped that pattern with $125.35K in short liquidations against just $16.96K in longs, suggesting today's drop caught late shorts off guard even during the broader long-side flush. This pattern change indicates that while longs initially dominated the market, short positions were more active during the recent decline, potentially signaling a shift in market sentiment. The current intraday correction following the strong weekly performance suggests profit-taking pressure as the token approaches key resistance levels.
