KAITO jumped 16% in the past 24 hours, driven by speculation that the project may announce a new partnership. The rally, however, is showing signs of fragility as spot market activity tilts toward sellers and funding rates remain negative.
What's fueling the rally
Traders are betting on an upcoming collaboration, though no official confirmation has been released. The price move comes amid a broader uptick in interest for smaller-cap tokens, but KAITO's gains stand out in terms of percentage.
Why the rally may not last
Despite the price surge, data from major exchanges shows that spot order books are dominated by sell orders. That means more holders are looking to cash out than buyers are stepping in to accumulate. At the same time, funding rates for KAITO perpetual futures are bearish, indicating that short positions are paying longs to stay open. That dynamic often precedes a pullback.
The combination of seller-heavy spot activity and negative funding suggests that the current price level may not be sustainable without a concrete catalyst. If the rumored partnership fails to materialize or underwhelms, the token could give back its gains quickly.
For now, the market is watching for any official statement from KAITO or the potential partner. Without one, the rally rests on speculation alone.
