Kaspa Price Action Signals 65% Breakout as Bullish Pattern Takes Shape
Key Takeaways
- Kaspa (KAS) has fallen by over 70% since its all-time high.
- The KAS price trades above the long-term support of $0.05.
- Will Kaspa begin a bullish trend reversal toward $0.11?
- Interested in buying or selling KASPA (KAS) coins? Read our review of the best exchanges to buy and sell KASPA (KAS).
KAS was one of the best performers in the crypto market during 2023, and it carried its momentum into the early months of 2024.
However, the tides shifted after July 2024, after which KAS lost nearly 75% of its value.
Nevertheless, the downward movement slowed in March and April, creating a bullish pattern.
Market sentiment is beginning to shift, but the key question is whether KAS can break out and reclaim its previous losses.
Kaspa’s Lengthy Correction
The weekly KAS outlook shows that the price completed a five-wave upward movement between June 2022 and July 2024 (green).
The increase led to the all-time high price of $0.207. However, the tides shifted afterward, and KAS fell over 70%, reaching a low of $0.052.
Kaspa’s correction looks like an A-B-C structure (red), which might have ended with this week’s bounce. The low reached a Fibonacci and horizontal support area.
Despite the bounce, technical indicators do not show any bullish signs. The Relative Strength Index (RSI) and Moving Average Convergence/Divergence (MACD) are falling.
The RSI is below 50, and the MACD is negative, indicating a bearish trend.
So, the weekly time frame does not indicate whether the correction will continue for another low or whether it is over.
Kaspa’s Bullish Pattern
The daily time frame suggests the lengthy correction is over. The short-term count shows a completed five-wave decline (black) that creates wave C.
Wave five developed into an ending diagonal, evident by the descending wedge shape. Waves three and five also created a double bottom pattern.
Technical indicators are also bullish, supporting the conclusion of the correction.
The RSI and MACD have generated bullish divergences (orange) during the wave three and five lows.
These divergences are associated with bullish trend reversals and fit perfectly with the count.
If the Kaspa price breaks out, it can increase by 65% and reach the $0.11 horizontal resistance area.
Kaspa Breakout Incoming
Kaspa finally shows signs of life after a 75% price decline by creating a bullish pattern.
The wave count and indicator readings support the breakout from the wedge.
If Kaspa breaks out, it could increase toward the $0.11 horizontal resistance area.
