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KAITO's Price Recovery: Top Holders Exit, Community Trust Key

Coin WorldThursday, Feb 20, 2025 6:51 pm ET

1min read

KAITO Price Tries to Recover as Top Holders Exit Just After Airdrop

KAITO, a token launched by a crypto analytics platform, experienced a significant sell-off shortly after its airdrop, leading to bearish sentiment and strong selling pressure. However, the token's price has shown signs of recovery, and if it can regain community trust and capitalize on its plans to tokenize social media content, it may challenge key resistance levels.

On-chain data reveals that top claimers quickly sold off their tokens, indicating strong selling pressure. Notably, the top 12 claimers received approximately $2.1 million worth of KAITO, but 10 of them have already sold at least a portion of their tokens, and 7 have fully exited their positions. Only 3 decided to stake their coins, reflecting a cautious approach toward long-term commitment.

This selling trend among the largest claimers suggests a lack of confidence in the token's long-term value or a strategic move to secure profits following the initial distribution. The broader on-chain activity shows a similar pattern, with 76.7% of all users who claimed KAITO experiencing a balance decrease. Although not all of them sold their entire holdings, the majority reduced their exposure, indicating a cautious or profit-taking sentiment.

Conversely, 22% of the claimers have not moved their tokens, reflecting strong holding conviction, while only 1.3% increased their holdings, showing minimal accumulation interest. This distribution pattern suggests that the community's criticism of KAITO's tokenomics and airdrop approach might have influenced users' behavior.

If KAITO can restore community confidence and generate interest through its plans to tokenize social media content using artificial intelligence, its price could continue recovering from the recent lows. KAITO was hard hit in the first hours after its launch, as was the case with many recent airdrops, such as Berachain. If it can recover from the recent strong selling pressure, it could test $1.5 or even $2 very soon.

However, if selling pressure persists, it could face further declines, especially as Dune data shows that less than 30% of the total KAITO supply has been claimed so far. This indicates that a significant portion of the tokens could still enter the market, potentially increasing selling pressure

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