KAS Price Concerns: Is a Deeper Drop Imminent?
Kaspa (KAS) recently tested March lows before recovering slightly. However, the long-term outlook remains bearish, raising concerns among investors. This analysis explores the reasons behind the downtrend and what it means for KAS traders and investors.
KAS's Persistent Downtrend
- Failed Resistance Breaches: Since December 2024, KAS has repeatedly attempted to break past key resistance levels without success.
- Consistent Selling Pressure: Steady selling pressure since the beginning of 2024 indicates significant bearish sentiment. The On-Balance Volume (OBV) has been consistently declining, further reinforcing this.
The 1-week chart illustrates a bullish breakout attempt in December, surpassing highs from August and September. This rally proved short-lived, with a subsequent 72% price drop over four months, hitting a low of $0.052 in March. Despite Bitcoin's rally from $76,000 to $111,000, KAS failed to sustain momentum, repeatedly being rebuffed by resistance at $0.126 (January's bearish order block).
Technical indicators, including the Relative Strength Index (RSI) below 50, and the consistently falling OBV since 2024, all suggest bearish momentum. This data presents a significant warning for long-term KAS investors.
What's Next for KAS?
While the 1-day chart shows a potential range formation between $0.06 and $0.117, with a midpoint of $0.088, the likelihood of a significant bounce remains low. The OBV's six-week downtrend and the resistance at the $0.08 level suggest caution.
Currently, going long on KAS is risky. Short sellers might find opportunities if the price retests the $0.088 supply zone. However, market conditions are constantly changing, so careful analysis is crucial.
Disclaimer: This analysis is for informational purposes only and does not constitute financial advice. Always conduct thorough research and consider your risk tolerance before making any investment decisions.
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