The cryptocurrency market never sleeps, and recent developments around Kaito Token have sent waves through the industry. Kaito’s price experienced a steep decline of over 20%, following a major disruption in its utility framework. Let’s break down what this means for investors and whether Kaito can reclaim its footing in this highly volatile market.
What Triggered the Kaito Token Plunge?
In an unexpected move, platform X banned reward-based InfoFi applications, leading to the dismantling of Kaito’s primary utility mechanism. The suspension of the Yaps program—a core part of Kaito’s ecosystem—left users questioning the token’s long-term viability. As a result, Kaito’s price plunged below the critical $0.700 support zone, trading at $0.5444 at the time of writing.
The Structural Shift in Kaito’s Market
Unlike the usual market sentiment fluctuations, the sell-off stemmed from a direct breakdown of Kaito’s utility model. Prior to the InfoFi ban, the token’s demand heavily relied on its rewarded engagement system. With that removed, the market is now grappling with how to value Kaito without its previous functionality.
Currently, Kaito is trading in bearish territory, staying below its short-term moving averages and forming lower lows. According to analysts, the price is expected to test its make-or-break zone between $0.4600 and $0.4700. Should this support zone fail, another correction may push prices toward the $0.3600-$0.3800 demand area.
On-Chain Data: A Bearish Outlook?
On-chain data suggests an increase in liquid supply, with 4.6 million Kaito tokens set to exit staking soon. Though unstaking doesn’t equate to immediate selling, it does elevate the pool of tradable tokens at a time of reduced demand. Additionally, upcoming unlocks for team and early backers further compound this supply-side pressure. Exchange-bound transfers have also risen, signaling short-term bearish positioning rather than accumulation.
Can Kaito Recover?
While the short-term outlook remains uncertain, recovery largely hinges on whether buyers can defend the $0.4600-$0.4700 range. Stabilizing here could lead to a consolidation phase, providing a foundation for potential recovery. However, without a compelling new narrative or utility model, upward momentum may remain constrained.
Consider Exploring Hardware Wallets for Token Security
During times of market volatility, securing your digital assets becomes more critical than ever. We recommend the Ledger Nano X, a highly trusted hardware wallet that ensures the safety of your cryptocurrency holdings. You can purchase it directly from Ledger’s official store.
The cryptocurrency world is unpredictable, but staying informed and taking proactive steps can help you navigate challenges effectively. Keep track of emerging updates for Kaito and other blockchain developments to stay ahead of the curve.
