This looks like a short squeeze. Short sellers who short between the price of $1.50 to $2.00 is panicking right now and is currently buying back shares, which would drive the price to around $3.
However, I would think that if the price did past the $3 price level, short seller will definitely go all out to recover their shorts. In addition, with price going back to $3.00, this will restore investors' confident in KRY. Price may shoot to $4.00.
As well, watch the volume when it hit $3.00. If it's high, hold. If it's low, sell.