KITE Risks Further Losses as Active Addresses Collapse and Bearish Momentum Intensifies

Kite AI (KITE) remains under intense selling pressure after a decisive breakdown below a multi-month ascending trendline triggered a fresh wave of bearish momentum.

The token has declined by 11% over the last 24 hours, extending losses that began shortly after the trendline support gave way. The breakdown has shifted market sentiment firmly in favor of sellers, with both technical and on-chain indicators pointing toward the possibility of additional downside.

Unless buyers regain control soon, KITE could be on course to retest lower support zones in the coming sessions.

Trendline breakdown puts bears in control

The recent selloff marks a significant deterioration in KITE’s market structure.

After spending months respecting an ascending support trendline, the token finally broke below the formation, triggering a wave of selling pressure. Such breakdowns often signal a shift from accumulation to distribution and can lead to prolonged periods of weakness if buyers fail to reclaim lost ground.

The decline accelerated over the past 24 hours, with KITE shedding 11% of its value as bearish sentiment intensified.

Notably, the token continues to trade below its key Exponential Moving Average (EMA) resistance levels, suggesting that sellers remain firmly in control of the broader trend.

Momentum indicators favor additional downside

Technical indicators are also reinforcing the bearish outlook.

The Stochastic RSI recently bounced lower after entering overbought territory, a development that often signals fading bullish momentum and the potential for renewed selling pressure.

Rather than confirming a recovery, the indicator’s rejection from elevated levels suggests buyers lacked the strength needed to reverse the prevailing downtrend.

Combined with the EMA rejection, the latest Stochastic RSI reading strengthens the case for further downside in the near term.

Network activity drops to alarming levels

On-chain metrics paint an equally concerning outlook. The number of active addresses on the network has fallen to just 139 over the last 24 hours, marking one of the weakest participation levels in recent months.

Declining active addresses typically indicate reduced user engagement, lower transaction activity, and weakening investor interest. For emerging projects, sustained declines in network participation can place additional pressure on price as liquidity and demand diminish.

The sharp contraction in activity suggests that market participants are becoming increasingly cautious amid the ongoing selloff.

Source: Santiment

Is $0.086 the next stop?

With both technical and on-chain indicators aligning to the downside, traders are now focusing on the next major support zone around $0.086.

The level represents the most significant downside target in the current structure and could become a magnet for price action if selling pressure persists.

While short-term relief rallies remain possible, bulls would likely need to reclaim key EMA resistance levels and generate a meaningful increase in network activity to invalidate the bearish thesis.

As it stands, the path of least resistance appears lower. Unless market conditions improve, KITE may continue drifting toward the $0.086 support zone as sellers maintain control of the trend.

Source:: KITE Risks Further Losses as Active Addresses Collapse and Bearish Momentum Intensifies