KAITO Battles Resistance as Bitcoin Recovery Looms

KAITO's recent price action has been closely tied to Bitcoin's performance, with the altcoin attempting to reclaim its all-time high (ATH) of $2.92. After a slight drop from this peak, KAITO is now trying to breach the resistance level of $2.26, with its price currently sitting at $2.22.

Market sentiment towards KAITO remains cautious, despite the potential for upward momentum. The negative funding rate of KAITO, which has increased over the past 24 hours, reveals that many traders are betting against the altcoin. Short contracts have dominated over long contracts, indicating traders' reluctance to fully back KAITO's recovery at this moment.

KAITO's correlation with Bitcoin has been rising, suggesting that it closely follows Bitcoin's market trends. As Bitcoin recovers from its intra-day low of $78,250, reaching a trading price of $84,719, the broader market sentiment could shift. If Bitcoin continues its upward trajectory, KAITO's price could follow suit, assuming the correlation strengthens further.

However, KAITO may continue to trade within a range between $1.86 and $2.44 in the near term. This consolidation suggests that the altcoin could remain trapped under $2.44, a critical resistance level. A successful breach of $2.44 would indicate the possibility of a rally, with the potential for KAITO to break its ATH of $2.92 and reach above $3.00.

A failure to break the $2.44 resistance level could result in KAITO consolidating under this price point, with the altcoin remaining stuck within the same range. A breach of $1.86 would further invalidate the bullish outlook, signaling a possible continuation of the downtrend.