Over the past few weeks, Kava has broken out of the downward spiral and reached its support point.
Kava.io has broken through its resistance barrier, escaping the downward spiral it had been in since it reached an all-time high of $30 on August 2021, 9,21, and plummeted to a low of $2,55 on February 24.
Since then, Kava has been moving upwards, trying to break the resistance barrier. On March 28, it managed to break through that barrier for the first time, showing for the first time signs that the correction was coming to an end. On April 1, Kava broke above $4,98, placing the new resistance level at $5,92.
Over the past week, the cryptocurrency has moved from $4,52 to $4,67 (at the time of writing), up 3,2% week-over-week. Kava currently has a market cap of over $800 million and over $100 million worth of Kava has been traded in the past 24 hours.
What is Kava?
Kava.io is a DeFi lending platform that offers users the ability to Lend, invest and earn tokensIn addition, the platform has cross-chain interaction functionalities.
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It is a speed-focused layer 1 blockchain, with a Developer-optimized cross-chain architecture, which combines the two most widely used permissionless ecosystems: Ethereum and Cosmos, within a single scalable blockchain. In this way, the flexibility and speed of Ethereum smart contract development is combined with the Cosmos SDK Interoperability, all on an ultra-fast network powered by the Tendermint consensus engine.
KAVA is the native token of the platform and is used for staking and to improve the security of the ecosystem.
Why has Kava risen this week?
One of the main reasons for its growth over the last seven days could be the launch of the Foundation that bears the same name, which is expected to take place this month. The foundation will be a non-profit advisory body that will provide strategic input to the project’s community and DAO.
Moreover, having broken the downward spiral it had been in since August 2021, the sentiment among users has changed and turned bullish. In this sense, the bulls hope to continue pushing to break the $5,92 barrier in the coming weeks.
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