On 16 October 2019, Binance announced Kava token as the 10th crypto-asset to be launched on the Binance Launchpad in 2019, joining the many projects that launched an Initial Exchange Offering (IEO) on the Binance Platform. About $3 million worth of BNB was raised. The amount was generated from the sale of 6.52 million of Kava tokens, which was 6.52% of the total supply. After the project and the airdrop, the digital asset gained popularity among many of its investors. In 2021, they were able to earn millions of dollars, but in the fall of 2022, the token returned to its initial value. This makes the Kava holders nervous. Should we expect a second wave of profits in 2023, or has the project completely exhausted itself?
Why will Kava Token increase in value in 2023?
KAVA Token has confirmed its status as a Bitcoin dependent coin. This project was very profitable, but a deep correction emptied the pockets of many investors. We recommend not to bury this cryptocurrency. The ecosystem continues its work, and the underlying ideas of the cross-chain DeFi lending platform are still relevant and innovative. We associate the first stage of growth with warming in the entire market. In this case, the price will be able to confidently gain a foothold above $1 per token and again interest buyers.
A strong price drop makes KAVA an interesting investment. There is every chance that this coin will become an illustration of the words of Warren Buffett “Buy when everyone is selling”. It is the short market sentiment that creates good prospects for a rebound.
However, we have no illusions about future growth. You may have noticed that we do not present fundamental arguments in favor of pampa KAVA. This is primarily due to the fact that the buyback program launched back in 2020 did not work properly. The number of tokens continues to grow. Take a look at the market capitalization chart:
In simple words, the coin has become heavier. To make a 100% pump, it now need to accumulate about $250 million. In 2020, only $50 million was enough for this. Now the project needs richer investors.
Is additional emission a problem? Of course not. However, it must be taken into account when predicting the price. KAVA is no longer the young project with a very small capitalization that it once was. It’s time to put aside the dreams of a quick 1000% profit.
2023 Kava Token Price Predictions
Basic technical analysis of support and resistance levels indicates that the situation with KAVA is not as bad as it might seem. The coin still has very old support in the area of $0.45 per token. It is this price that can be considered for profitable purchases with a short stop loss.
No need to set fantastic goals. The closest level the coin can touch is $1.5. Before that, you need to confidently gain a foothold above the psychological mark of $1, which we wrote about in the last section.
If you bought KAVA for about 50 cents, then in 2023 your profit-taking zone could be $2.8-2.9. If the price reaches this zone, then investors will be able to get at least 300% profit. Please note that there are no guarantees of such a development of events. You must consider all risks. We are modeling a positive scenario. But even with such a positive, we would not talk about prices above $ 3. The level of 2.8-2.9 dollars is too strong to overcome it quickly. If the market conjuncture points to further market growth, then you can always re-enter a trade either on breaking through an important level or after a slight correction.