KITE extended its rebound as investors continued to rotate capital into the growing AI agent infrastructure narrative.
Renewed sector-wide interest has helped the token outperform several smaller AI projects despite continued caution across the broader market.
At the time of writing, paper airplane It traded at $0.1203 after rising 13.49% in the past 24 hours.
Trading activity also strengthened, with daily trading volume rising 54.20% to nearly $48.88 million, showing that new participation accompanied the rise.
Why are traders still betting on KITE?
Despite KITE’s recent gains, Binance’s positioning reflects ongoing skepticism among leveraged participants.
Data from the most important trader accounts showed that 63.94% of accounts remained short, while only 36.06% maintained long positions, resulting in Long/short Ratio 0.56.
Position-based data also favored bears, with 55.22% of exposure on the short side compared to 44.78% allocated to long positions, resulting in a ratio of 0.81.
These numbers suggest that many experienced traders still expect the recovery to lose steam rather than develop into a broader trend reversal.
However, such a crowded bearish situation also increases the possibility of forced buying if KITE continues to advance, because additional upside would put pressure on short sellers to close their positions and cut their losses.
Can KITE confirm its recovery?
KITE rebounded from the $0.1018 support level and approached the first resistance near $0.1459, reflecting improved buying interest after several weeks of weakness. However, technical confirmation remained incomplete.
The Parabolic SAR continued to rise above the candles, suggesting that the broader trend remains bearish despite the recent recovery.
At the same time, the MACD line remained below the signal line, confirming that a bullish crossover has not yet formed.
However, the MACD histogram has gradually become less negative, indicating that the downward pressure has gradually weakened as buyers regain control over recent sessions.
If the price regains $0.1459, technical conditions will likely improve further.
However, failure to hold above $0.1018 may reinforce the prevailing downtrend and delay any confirmed trend reversal.
Where could short sellers face pressure next?
The filtering heat map highlighted several concentrated short positions that are above KITE’s current market price.
The closest liquidity cluster appeared around $0.124, followed by increasingly dense pockets of liquidation between $0.128 and $0.135.
These levels represent areas where additional buying could lead to forced short liquidations, which could accelerate volatility if the recovery continues.
In contrast, bearish liquidity remained relatively lighter below the current price, indicating that spot selling pressure had less impact due to clearing from the general resistance.
However, the bulls still need sustained demand to reach those groups because bearish positions alone will not guarantee a squeeze.
Instead, the heat map indicated where market participants were likely to react more aggressively once the price approached those levels.
Bottom line, KITE’s recovery has remained supported by renewed interest in AI agent infrastructure, while increased trading activity has fueled the recent advance.
However, technical indicators have yet to confirm a full trend reversal, leaving the recovery weak below key resistance.
If buyers push out the general liquidation pools and reclaim $0.1459, a heavily shorted market could trigger a stronger rally.
Otherwise, the broader bearish structure is likely to remain intact.
Final summary
- Interest in AI agents has fueled KITE’s recovery, but technical indicators are still waiting for full bullish confirmation.
- Heavy short positions can amplify gains if buyers reclaim the next major resistance level.
