Why Did Kaito Price Drop 20%: X’s InfoFi Ban Cut Off Core Utility

The Kaito price

This decline has come with notable technical signs of distribution. Looking at the price structure, Kaito price has been facing rejections multiple times from its descending trendline zone and this time again, but in an aggressive manner.

For the past few weeks, Kaito token has been forming lower lows and trades in a bearish trend, below its short-term moving averages. At present, the Kaito price is heading close to its make or break zone of $0.4600-$0.4700.

If buyers defend this zone, a short-term sideways movement would be seen, while a break below the zone may deepen the correction toward the key demand zone of $0.3600-$0.3800.

On-Chain Supply Dynamics Shift Against Kaito

With the InfoFi narrative now impaired, Kaito’s price behaviour is increasingly dictated by supply flows rather than future expectations.

On-chain data points to a near-term increase in liquid supply, as approximately 4.6 million Kaito tokens are scheduled to exit staking in the coming days. While unstaking does not automatically translate to selling, it materially raises the pool of immediately tradable tokens at a time when demand has weakened.

Beyond the short-term additional supply pressure looms from scheduled team and early backer unlocks expected in the weeks ahead. In parallel, exchange-bound transfers activity has risen during the recent decline, signaling positioning rather than accumulation.

FAQs

Why is KAITO’s price down today?

KAITO dropped over 20% after its core InfoFi utility was banned, cutting user-driven demand and triggering a sharp sell-off.

How does the InfoFi ban affect Kaito’s future demand?

With reward-for-posting apps blocked, Kaito’s usage-driven demand drops, leaving price more influenced by supply than adoption.

Could Kaito price recover in the short term?

Recovery depends on buyers defending $0.460–$0.470. Without support, bearish momentum may deepen and drive price lower.

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