KAIA surged after the Kaia wallet was integrated into the Web3 game “Magic Squad”, boosting demand and capital inflows into both the spot and Derivative markets.
After eight consecutive months of decline, KAIA held firm at the $0.05 level and broke out of its multi-month downtrend channel. The upward momentum was accompanied by a surge in volume and Derivative activity, indicating a clear return of buying pressure but also increasing the risk of a correction.
- KAIA broke out of its long-term downtrend channel, surging to $0.084 before retreating to $0.079.
- A notable example is the Kaia wallet integrated into the Web3 game "Magic Squad" with its gas abstraction feature.
- Spot buying was overwhelming and Derivative were booming (Volume, open interest), but the risk of a Dump could cause the price to fall back to $0.06.
KAIA breaks out of multi-month downtrend channel after holding steady at $0.05.
KAIA hit a Dip of $0.05 before rebounding, breaking out of its long-term downtrend channel and heading towards a 2-month high of $0.084 before a slight correction.
For the previous eight consecutive months, KAIA traded in a steep downtrend, reflecting sustained selling pressure. Holding above the $0.05 level became a crucial turning point, allowing the price to recover and break out of the multi-month downtrend channel.
The surge took KAIA from $0.049 to $0.084 (a two-month high), before retreating slightly. At the time of writing, KAIA was at $0.079, representing a 39.7% increase in 24 hours.
During the same period, volume increased by 430% to $106 million, while market Capital surpassed $500 million. The combination of a sharp price increase and a surge in volume often indicates the presence of catalysts and new capital inflows.
Kaia Wallet is integrated into “Magic Squad,” creating a boost in convenience.
The Web3 game “Magic Squad” integrates the Kaia wallet and gas abstraction mechanism, allowing users to pay transaction fees without holding KAIA, thereby reducing the barrier to adoption.
Metabora Games has partnered with Noestallagames to launch the Web3 game “Magic Squad”. A notable feature is the integrated gas abstraction function with the KAIA wallet , allowing users to pay transaction fees without holding KAIA Token .
In terms of ecosystem growth, these types of integrations typically have two impacts: (1) creating real-world “Use Case” from mainstream users, and (2) improving the on-chain experience by simplifying the Token deposit process for fee payments. This can contribute to reducing friction as Web2 players move to Web3.
Although gas abstraction eliminates the need for users to hold KAIA tokens to pay fees, it can still boost network activity and brand awareness. In fact, the market often reacts positively to news of expanded utility, especially when linked to the large user base of Web3 games.
Buyers dominated the spot market as KAIA experienced strong Dip.
After breaking below $0.05, buying pressure returned and dominated the spot market, as evidenced by slightly higher Buy Volume than Sell Volume and positive Buy/Sell Delta.
When KAIA dropped below $0.05, buyers entered strongly, reportedly in response to expectations of expansion into Web3 gaming. On major exchanges, " Dip-buying" helped defend the price at a key level.
According to Coinalyze data (quoted in the original content), on Binance and Bitfinex, KAIA recorded 144 million Buy Volume compared to 140 million Sell Volume at the time of recording.
This creates a positive Buy Sell Delta of 4 million, indicating that buyers are temporarily in control. In the context of the price having just broken out of a downtrend channel, a positive delta is often XEM as a signal of spot accumulation, although its sustainability over several sessions still needs to be monitored.
Derivative heat up as Volume and Open Interest explode simultaneously.
The simultaneous surge in Derivative Volume and open interest indicates a rapid increase in capital flow and participation, reflecting a "trend-following" mentality but also increasing volatility risk.
As KAIA continued to rise, many traders rushed into Derivative to ride the wave. According to CoinGlass (quoted in the original content), Derivatives Volume increased 1,046% to $360 million, while Open Interest increased 279% to $31 million at the time of recording.
An increase in both Open Interest (OI) and Volume) typically implies the opening of new positions and the inflow of new Capital , rather than simply the closing/opening of existing positions. The original data also recorded over $123 million "flowing into" Futures positions, reflecting increased demand for both Longing and Short positions.
Notably, the Longing/ Short Ratio increased to 1.04, and the "Binance Top Traders" account group leaned towards Longing positions. When this ratio is above 1, the market is leaning towards bullish expectations, but it can also increase the risk of a squeeze if prices reverse quickly.
KAIA's upward momentum depends on whether buying pressure is sustained.
Both RSI and DMI have shifted to a strong bullish state, opening up a scenario towards $0.10–$0.11 if buying pressure holds; conversely, profit-taking pressure could pull the price back down to $0.06.
KAIA rose as buying pressure emerged simultaneously in both spot and futures contracts, helping to protect key price levels. After surpassing $0.06, demand remained high as investors chased the rally, fearing they would miss out on the opportunity.
The RSI indicator recorded an upward crossover and reached 70 at the time of recording, usually reflecting strong buying pressure. At high RSI levels, the trend may continue, but a correction is also likely if momentum weakens.
The Directional Movement Index (DMI) also crossed higher and rose to 48, while the negative index fell back to 30. This combination supports a continued uptrend if demand remains.
Positive scenario: If buyers maintain control, KAIA could reclaim $0.10 and test the $0.11 resistance level. Risky scenario: If the Derivative bubble bursts or holder take profits aggressively, the price could fall back to $0.06.
Frequently Asked Questions
Why did KAIA surge in the last 24 hours?
KAIA surged after bouncing up from the $0.05 region and breaking out of a multi-month downtrend channel, benefiting from news that the Kaia wallet was integrated into the Web3 game “Magic Squad” and a strong increase in capital flows in both spot and Derivative.
What does gas abstraction in "Magic Squad" mean to the user?
The gas abstraction feature allows users to pay transaction fees without holding KAIA Token , reducing barriers to Web3 experience and potentially supporting increased app usage within the ecosystem.
Does the current spot data indicate that buying pressure is dominant?
At the time of recording, Buy Volume was 144 million compared to Sell Volume of 140 million, resulting in a positive Buy Sell Delta of 4 million. This indicates a slight advantage for buyers and may reflect spot accumulation, although it needs to be monitored over time.
Does the surge in derivatives make KAIA riskier?
Yes. A sharp increase in Derivatives Volume and Open Interest indicates many new positions being opened, which often leads to increased volatility. If the upward momentum weakens, the market may experience a squeeze or quick profit-taking, causing a price correction.
What price points are the market paying attention to for KAIA?
The original text outlines two main scenarios: if buying pressure persists, KAIA could head towards $0.10 and the $0.11 resistance zone; if profit-taking pressure increases and Derivative cool down, the price could retreat to $0.06.
