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Kaia Blockchain Debuts as Asia’s TON Competitor: KLAY Price Sinks to $0.15

Kaia Blockchain Debuts as Asia’s TON Competitor: KLAY Price Sinks to $0.15

CryptoNewsCryptoNews2024/08/31 02:54
By:Harvey Hunter

Despite the milestone for Klaytn network, its native token KLAY has not been bolstered by the news.

Last updated:
August 30, 2024 09:26 EDT

Despite the Kaia Blockchain’s launch as a replacement for the Klaytn network, Asia’s answer to Telegram’s The Open Network (TON), the KLAY price has suffered a significant 9.04% in the 24 hours post-launch.

Today’s lapse has contributed to much of KLAY’s decline since last Thursday, down 8.52%—making it one of the most affected among other notable altcoins over this period.

Indeed, with this significant decline, trader interest in KLAY has taken a hit. The altcoin’s trading volume has plummeted 16.67% to $27.1 million over the past 24 hours.

Kaia Blockchain Goes Live: Asia’s TON Competitor?

On August 29th, Kaia launched it’s Layer 1 network following a merger between Finschia, the blockchain from Line, a popular Japanese messaging app, and Klaytn, a network backed by Kakao, a Korean messaging platform.

Kaia’s launch is described as the “critical first step in expanding the Asian Web3 ecosystem,” focusing on facilitating mini-decentralized applications (DApps) on both the Line and KakaoTalk platforms.

In a Klaytn press release Aidan Kwon, head of the Klaytn Foundation, emphasised the magnitude of the merger. It combines Klaytn’s DeFi and gaming services with Finschia’s NFT , payment, and AI services, creating a massive ecosystem of over 420 DApps and services.

The project draws inspiration from The Open Network (TON) , which became 2024’s fastest-growing blockchain after integrating with Telegram.

Kwon emphasized that Kaia aims to replicate this success by integrating with messenger platforms first, leveraging their extensive user bases as “super apps.”

However, Kaia’s post-launch reception seems to have missed the mark, sending its native token KLAY down to $0.1550.

KLAY Price Analysis: Can Klay Recover?

After its recent decline, the KLAY price seems to be regaining its footing as it consolidates within a narrow range between $0.1580 and $0.1550.

KLAY / USDT 1H chart. Source: Binance.

Despite efforts to break through the upper resistance of its consolidation range, the KLAY price lacks the momentum needed for a significant upward move.

Most notably, KLAY’s Chaikin Money Flow (CMF) remains deeply negative at -0.17, signaling persistent selling pressure that complicates any potential recovery.

Likewise, the Relative Strength Index (RSI) is struggling to maintain a position above 40. While not deeply oversold, this suggests that the bearish sentiment persists.

The weak buying pressure and caution among traders could continue to hinder KLAY’s upward momentum unless stronger demand emerges.

On the other hand, other indicators offer a glimmer of hope. The MACD line has crossed above the signal line, suggesting that buyers have begun to challenge sellers’ dominance.

However, as we approach the resistance presented by the lower bound of its consolidation, this positive signal may not be sufficient to sustain a recovery alone.

Given the current conditions, if KLAY cannot muster sufficient support and falls out of its consolidation, it may face further downside. This could lead to a retracement towards previous resistance levels, potentially as low as $0.15.

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Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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