KAITO Drops 32.8% in Seven Days as Selling Pressure Overwhelms Long Traders

Kaito [$KAITO] appears poised to unwind gains accumulated over the past two months, as a sharp rise in bearish activity shifts control from buyers to sellers across the market.

Over the past seven days, $KAITO has declined 32.8%—a drop steep enough to nearly erase the token's entire quarterly performance. $KAITO had posted a 35.22% gain over the preceding 90 days. The most recent pressure stems from a sell-off in the last 24 hours, during which the asset fell approximately 18.7%. Capital flows across both the perpetual and spot markets are now playing a decisive role in the token's near-term direction.

Selling Volume Dominates the $KAITO Market

Selling volume has climbed to the point where it now controls the market outright. The Long/Short Ratio—a measure of perpetual-market volume across the $KAITO market—has dropped to 0.46, placing it firmly on the selling side.

A ratio below 1 indicates that selling volume exceeds buying volume, and the further the reading falls from 1, the more pronounced the selling pressure. Traders on Binance and OKX have driven much of this activity, and selling-side volume remains elevated.

The toll on traders is visible in the loss data. Long traders lost approximately $748,000 over the period, compared to roughly $84,000 in losses for short traders—meaning longs absorbed about nine times the damage. This dynamic suggests the decline may persist and continue working against long positions as selling maintains its grip on market activity.

Perpetual Market Capital Drains from $KAITO

Capital in the perpetual market has contracted sharply, with outflows significantly exceeding inflows. CoinGlass recorded a negative net flow of -$10.99 million for $KAITO, indicating net selling. Over the past seven days, approximately $34 million has been pulled from the market.

The Funding Rate has also turned negative, dropping to -0.1743%. The last period of negative funding was recorded on December 27, when the reading reached -1.038%. A deeply negative Funding Rate indicates that the majority of perpetual-market capital is positioned on the short side, as bears maintain dominance.

Negative funding rates of this kind make long positions effectively cheaper to hold, as shorts pay longs to keep trades open. In previous cycles across newer tokens, sustained negative funding has sometimes preceded short squeezes when unexpected buy-side volume forces rapid position unwinding—a dynamic $KAITO traders may be watching for if volume profiles shift.

Spot Market Provides No Support for $KAITO

The capital drain has not been confined to the perpetual market. The spot market offers no foundation for a price recovery, as spot net flow turned positive—meaning more coins moved onto exchanges for sale. Approximately $273,000 was offloaded within a 24-hour window.

This type of sell-off during a price decline typically reflects either traders locking in profits or cutting losses while still possible. The pattern extends across a broader timeframe: losses reached $2.63 million over seven days and $16.01 million over 15 days, averaging just over $1 million per day.

Kaito, the AI-powered crypto information platform behind the token, launched $KAITO in early 2025 alongside its Yaps points system, which rewarded user engagement across social and research content. Tokens associated with attention-driven and community-reward models have shown elevated volatility in their post-launch quarters, as early distribution recipients and airdrop participants decide whether to hold or exit.

At its current trajectory, $KAITO faces greater risk of continued decline than near-term recovery prospects. Key metrics traders are monitoring include whether the Funding Rate moves back toward neutral or positive territory, whether the Long/Short Ratio recovers above 1, and whether spot flows reverse from exchange inflows to outflows—signals that would indicate selling pressure is easing rather than intensifying.