KAITO has fallen 31% over the past week, dropping from a recent high of $1.37 to trade around $0.67, as the AI-driven crypto research token loses the momentum that carried it to that peak less than two weeks ago. The token's market cap has slipped to roughly $163 million, while trading volume has collapsed 54% to $40 million, a sign that conviction on both sides of the trade is thinning rather than building toward a decisive move.

The immediate technical picture is bleak: KAITO broke below its $0.7 support level to touch $0.65, and its Relative Strength Index has fallen from an overbought 81 to 37, reflecting a sharp swing from euphoria to bearish pressure in a matter of days. Traders are now watching whether $0.60 holds as the next line of defense.

two bitcoins sitting next to each other on a table
Photo by Kanchanara on Unsplash

A whale is buying the dip

Against that backdrop, at least one large holder has been adding to their position through the selloff. On-chain data shows a whale purchased 1.917 million KAITO worth $1.32 million directly from Coinbase, bringing their cumulative holdings to 2.815 million tokens worth roughly $2.36 million. Accumulation of that size during a sharp drawdown is typically read as a bullish signal, on the logic that a large holder willing to average in during a 31% weekly decline sees the drop as temporary rather than structural.

But futures traders are heading for the exits

The derivatives market tells a less optimistic story. One whale closed out a 2.24 million KAITO long position at a loss of roughly $994,000, and aggregate futures flows have turned sharply negative: $107 million exited KAITO futures over 24 hours against $100 million entering, a net outflow of $7.64 million that adds to a cumulative $30 million pulled from futures positions over the past four days. Spot markets are leaking capital too, with a negative netflow of $212,000 suggesting holders are moving tokens off exchanges rather than positioning to sell, but not enough to offset the broader retreat.

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What KAITO is and why it rallied

KAITO powers an AI-driven “InfoFi” platform that aggregates on-chain data, governance discussions and market signals into a searchable research layer, and rewards quality content creation through a points system called Yaps that effectively turns social engagement into a tradable asset. The project, founded in 2022, gained additional exposure after Binance named it the ninth project in its HODLer Airdrops program, a listing boost that has historically preceded sharp run-ups followed by equally sharp cooldowns for tokens on that list.

For now, the split between spot accumulation and futures capitulation leaves KAITO in a fragile spot: whale buying has provided some support, but without a corresponding recovery in futures positioning and trading volume, the $0.60 level remains the key test for whether the pullback stabilizes or extends toward the $0.96–$1.00 zone traders are eyeing for a longer-term reversal.