KAVAUSD – Midpoint Retest with a Shot at a Daily Higher LowCOINBASE:KAVAUSD / COINBASE:KAVAUSDC
Watching KAVA here on the daily, and it’s at a key decision point that could define the next leg. We’ve got two sets of Fibonacci retracements drawn: the first from the March 2024 high to the August 2024 low, and the second from the August low to the December high. Right now, price is retesting the 50% level of the larger March–August move—aka the midpoint of the macro range—and it's still holding above the 50% retracement of the more recent August–December leg. We’re also sitting right on the 38.2% Fib of that second move, which tends to act as a key area for potential higher lows.
The idea here is simple: I’m playing for a daily higher low. We had a strong move off the December lows, followed by a healthy consolidation, and this is where bulls need to step in. Structure-wise, this is the ideal area for bulls to attempt a defense if the trend is going to continue. EMAs are curling up, and price is still holding above the 12 and 26 EMAs for now, which gives me confidence in a potential bounce.
If the Trade Goes as Planned (Bullish Case)
If buyers step in here and confirm a higher low—ideally somewhere between $0.48 and $0.50—we’d expect a continuation toward the recent high at $0.56. If that level breaks, then $0.64 becomes the next area of interest based on prior price structure and confluence with the upper Fib retracement levels. From there, we could even make a push toward the $0.74 area, where the last major rejection happened in late 2024.
A strong bounce here also sets up a potential inverse head and shoulders structure on the daily if we revisit that neckline around $0.56 again with momentum. In short, a higher low here gives the bulls the setup they need to retake trend control.
If the Trade Fails (Bearish Case)
If price fails to hold the $0.48–$0.50 region and breaks below the August–December 50% Fib level, then we’re likely heading back to the $0.44 zone. That’s where the 200-day SMA is sitting, and it’s also a major pivot from previous support. A loss of that zone opens the door to a full retrace toward $0.39 or even $0.37—last seen during the November-December basing structure.
In that case, the trend would flip neutral at best and would require a fresh base-building phase before bulls could even think about regaining momentum.
TL;DR
Thesis: Playing for a daily higher low above key Fib levels and EMAs.
Bullish Target: Reclaim $0.56 → push toward $0.64–$0.74 if momentum follows through.
Bearish Invalidator: Break below $0.48 = likely revisit of $0.44 or lower.
Not financial advice. Just sharing my thinking as I try to stack confluence and play the levels. Let’s see if this bounce gets legs.
