Kaspa Crypto News – KAS Price Hits New Low: Can a Short-Term Rebound Spark Hope?

Kaspa Crypto News – KAS Price Dips Below Key Support Level: What Does This Mean for Traders?

Kaspa Crypto News – Since reaching its all-time high (ATH) of $0.207 in July 2024, the KAS price has been on a downward trajectory. After a failed rally in December 2024, the price set a lower high and began accelerating its downward movement. However, recent developments have sparked some optimism among investors, positioning KAS as the biggest gainer in the crypto market this week.

KAS Price Breaks Down: Bearish Momentum Takes Hold

The weekly time frame chart reveals a significant breakdown for Kaspa in the first week of February 2025. The KAS price had been trading within a support range of $0.102 for 455 days, but this level was breached in February and later confirmed as resistance, signaling the end of the bullish trend.

The breakdown has led to a significant drop in KAS’s price. As of March 12, KAS hit a new yearly low of $0.0055, marking a steep decline of over 70% from its ATH. Currently, the next key support area for KAS lies between $0.0045 and $0.0050, which is supported by horizontal and Fibonacci retracement levels.

Technical Indicators Point to a Bearish Outlook

Several technical indicators reinforce the bearish sentiment surrounding KAS. The Relative Strength Index (RSI) is below 50, indicating that the momentum remains negative. Similarly, the Moving Average Convergence Divergence (MACD) is also below zero, further confirming the bearish trend.

Given these long-term indicators, the KAS price is expected to approach and test the support zone around $0.0045–$0.0050 in the near future. The break below the key support level of $0.102 and the ongoing downtrend suggest that KAS may struggle to reverse its negative momentum in the short term.

Could KAS Price Bounce?

Despite the ongoing downward movement, the daily time frame chart presents a slightly more bullish outlook for Kaspa. The KAS price is currently trading within a descending wedge, a technical pattern often associated with bullish price reversals. As KAS approaches the tip of the wedge, a decisive breakout could occur in the near future.

The MACD on the daily chart has shown a bullish divergence, a common precursor to trend reversals. However, the RSI has not followed suit, leaving some doubt about the strength of the potential breakout. If the breakout occurs, the closest resistance zone is at $0.105, aligning with a long-term horizontal level.

The Wave Count and Potential for a Breakout

The wave count within the descending wedge suggests that the current downtrend may be completing its five-wave decline. This could indicate that the KAS price is nearing a crucial point for a breakout. However, some uncertainty remains regarding the wave structure. The lack of a common ratio between waves A and C in the pattern raises questions about the overall accuracy of the count. This discrepancy implies that the weekly and daily time frames may be offering conflicting signals. While the weekly chart suggests continued bearishness, the daily chart points to the possibility of a short-term bullish move.

The most likely scenario, based on the current chart analysis, is that the KAS price will experience a breakout toward the $0.105 resistance level. This rally could be followed by a further decline, potentially reaching the support zone of $0.0045-$0.0050. In this case, the expected relief rally may provide a temporary respite from the ongoing bearish trend before the price eventually falls to new lows.

Conclusion: Long-Term Bearish Trend with Potential for Short-Term Bounce

The long-term outlook for Kaspa (KAS) remains largely bearish due to the breakdown below the critical support level of $0.0105. However, the daily time frame suggests a possible short-term breakout toward the $0.105 level before the price likely returns to test the support zone at $0.0045-$0.0050. The bearish trend, marked by a failed rally and declining technical indicators, is still in play, but the potential for a temporary relief rally could offer some hope to traders in the coming days.

While KAS shows signs of a short-term bounce, it is essential for investors to closely monitor the key support levels and breakout patterns for any signs of a shift in momentum. Until further confirmation, Kaspa remains trapped within a longer-term bearish trend, with the possibility of future price reversals contingent on market conditions and broader trends in the crypto market.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.