KMNO Bulls Face Overbought Risk as Market Momentum Persists
Kamino Finance (KMNO) has surged by 17% in value over the past day, building on its notable gains from previous weeks. This impressive rally puts KMNO into the overbought territory according to Bollinger Bands analysis.
The upper Bollinger Band line indicates that price is now above fair value, suggesting a high risk of a decline when trading into this zone. In four past instances where price touched the upper band, it declined to the mid-band level.
Despite this warning sign, market momentum continues to support the upward move for KMNO. The Moving Average Convergence Divergence (MACD) is rallying and maintaining a strong position on the positive side, indicating heavy accumulation of the asset.
On-chain growth further strengthens the bull case for KMNO. According to DeFiLlama data, Total Value Locked (TVL) has surged by over $253 million since September 2, reaching roughly $1.541 billion presently. This surge reflects users committing funds to earn APY in anticipation of long-term price appreciation.