KDA/USDT – Major Reversal Brewing from Multi-Year Demand Zone?🔍 Technical Breakdown – Weekly Timeframe
Kadena (KDA) is currently trading at a make-or-break level after months of persistent downtrend. The price is revisiting a historical multi-year demand zone between $0.31 - $0.45, an area that previously acted as a launchpad for major rallies.
This range has consistently attracted buyers, forming a strong base of accumulation, as observed in mid-2021 and mid-2022. Now, once again, KDA is testing this critical zone — and all eyes are on whether it will spark the next impulsive leg up.
🧠 Pattern Structure:
Price has formed a potential Triple Bottom / Rounded Accumulation pattern on the weekly chart.
Strong bullish divergence is visible (if confirmed by RSI or MACD).
Long-term sideways consolidation hints at phase of accumulation, common before breakout rallies.
A clean break above local resistance zones may trigger a multi-level Fibonacci extension rally.
🟢 Bullish Scenario:
If price holds and confirms a rebound from this yellow demand box, watch for a bullish breakout with the following key resistance targets:
1. 🔹 $0.6277 – Minor local resistance
2. 🔹 $0.8354 – Former swing high (early 2024)
3. 🔹 $1.1000 – Psychological & structural level
4. 🔹 $1.3567 – Weekly resistance
5. 🔹 $1.7615 – Medium-term target zone
💥 Extension Targets for Macro Bulls:
$5.5285 – Previous major high
$7.6381 – Major resistance from 2022
$15.3227 and $21.9739 – Long-term fib levels from all-time high retracement
✅ Bullish confirmation requires a weekly close above $1.10 with rising volume and higher highs.
🔴 Bearish Scenario:
If price closes below $0.31 with strong bearish momentum:
Expect continuation of macro downtrend.
No strong support structure below; risk of falling into uncharted territory or sub-$0.20 levels.
Breakdown could lead to capitulation and extended bear phase.
⚠️ Manage risk accordingly. Invalidating the current demand zone could shift the entire structure to a distribution model.
📊 Market Psychology & Volume Profile Insight
Extended sideways action and low volatility can signal the end of bearish momentum.
A breakout from this long-term base often leads to explosive upside as weak hands are flushed out.
Volume spikes near the bottom zones indicate smart money accumulation.
🧭 Strategic Note for Traders:
This setup offers a high reward-to-risk ratio, especially for swing and position traders. Early entry within the accumulation zone with tight stop-loss (below $0.30) could provide a golden opportunity — but only if confirmed with volume and price strength.
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