Kite AI is currently trading at the 0.09 level showing a significant 18% correction over the last week. To the average retail trader this looks like a falling knife. To a seasoned technical analyst this looks like the final phase of a Wyckoff Spring. We have officially broken below the psychological 0.10 support. This is a classic liquidity grab designed to trigger the stop losses of leverage traders. The market makers are clearing the board before the next expansion phase.
The technical indicators are flashing extreme oversold signals. The Relative Strength Index on the daily chart has hit levels not seen since the initial token launch. Historically when an asset like Kite AI hits this level of oversold conditions a mean reversion rally follows immediately. The price cannot stay suppressed at 0.09 for long when the fundamental demand for AI infrastructure is growing exponentially.
Volume analysis tells a bullish story hidden in the red candles. Despite the price dropping to 0.09 the selling volume is drying up. The weak hands have already sold. Who is left holding the token? The high conviction holders and the institutional accumulators. We are seeing a divergence between price and volume. Price is making lower lows but volume is making higher lows. This is a primary reversal signal.
The support level at 0.09 is critical. If this level holds we are forming a double bottom pattern which is one of the most powerful bullish setups in technical analysis. The upside target for the relief rally is back to the breakdown level of 0.10 and then an extension to 0.12. The risk to reward ratio at this entry is mathematically superior to chasing green candles.
In the broader context Kite AI is building the payment rails for the Agentic Economy. As we move into 2026 AI agents will need a fast and cheap currency to settle transactions. They will not use expensive legacy chains. They will use Kite. This drop to 0.09 is a temporary market inefficiency. It is a gift for those who have the vision to see past the fear.
