The altcoin market slightly rebounded in the month of July, and KAITO AI was an exception. The price of KAITO rallied from a low of around $0.40 that came about in early April to $1.37 in late July.
However, KAITO AI crashed more than 19% in the past 24 hours, thus losing 68% in just 15 days. As such, it has lost all the July gains, but what was behind this massive capital flight?
Why has KAITO lost all of its July gains?
The decline may be due to a correction following July’s pump, which InfoFi 2.0 drove.
Additionally, the daily token trading volume has dropped from $84 million to $25 million, a more than 3x loss of capital in four days. On a weekly scale, the volume plummeted from $541 million to $277 million.
Moreover, the Total Value Locked (TVL) and the market cap of Staked tokens fell sharply. For instance, TVL plunged from $21.9 million to around $8 million.
More importantly, USD flows reinforced capital flight. On August 13 alone, more than $3 million had been withdrawn from the ecosystem. Outflows have dominated KAITO since the second day of this month.
The derivative data further stressed the selling pressure in the altcoin. According to CoinGlass, the OI-Weighted Funding Rate has been red over the past four days with a current reading of negative 0.4359%.
This OI-Weighted Funding Rate reading suggested that traders were building short-order leverage. As such, it has amplified the price crash, leading to a full retracement.
Can the altcoin rebound from the $0.40 support level?
The price action chart displayed the inverted V-pattern with the apex above $1.30. After a month-long rally, the altcoin reached a tipping point and thus lost the slanting support line.
The trend was clear from the Accumulation/Distribution indicator, which showed more than 458 million KAITO tokens were being sold.
To add more salt to injury, bulls’ positions were being wiped out. The Aggregate Liquidations data showed $1.25 million in longs were lost compared to only $198K by bears.
Therefore, if bulls can help price hold above the July support at $0.40, the altcoin may recover. But such a scenario would require a change in market sentiment, for instance, ending the distribution event that is ongoing.
Otherwise, if bulls lose this level, it would expose $0.266, which is KAITO’s low for 2026. At the moment, bears are in control, and the losses may only become bigger.
Final Summary
- KAITO AI crashed 19% in the past 24 hours, extending its two-week losses to more than 68%.
- KAITO’s price has fully retraced its July pump as distribution gains momentum amid rising long liquidations.