Kaspa (KAS) Price Weakens After Breakout Run — First Significant Pullback Ahead

Key Takeaways

• Price nears exhaustion after five-wave impulse rally.
• The ending diagonal hints at a short-term pullback.
• Macro breakout still requires further confirmation.

Kaspa has completed a prolonged WXYXZ corrective structure breaking out from a major descending structure.

The 4-hour chart indicates a potential bottom formation, while the 1-hour chart shows an ending diagonal, suggesting the final stages of an impulsive wave. 

A short-term correction is likely before continuation, with price action nearing key Fibonacci resistance levels.

Kaspa Price Analysis

The 4-hour chart shows Kaspa’s long-term corrective structure appears to have ended at the recent $0.052 low, marking the completion of wave (e) within a descending channel. 

This correction follows a prolonged WXY pattern that started after Wave 5 reached a high of $0.208 on July 31.

After bottoming, the price broke above the descending channel on April 9, initiating a bullish reversal. 

The Relative Strength Index (RSI) on the 4-hour chart confirms this with a strong bounce from oversold territory, climbing into bullish territory near 70.

Kaspa is approaching the 0.618 Fibonacci retracement level at $0.082, a significant resistance aligned with past structure. 

The next resistance lies between $0.095 and $0.107, corresponding to the previous breakdown zones and the 0.5 retracement.

However, a corrective retracement is possible before another upward leg can unfold.

The macrostructure suggests a reversal, but Kaspa must reclaim and hold above $0.095 to confirm a sustained trend shift.

Kaspa Price Prediction

Zooming into the 1-hour chart, Kaspa completes a five-wave impulsive structure, with wave (v) potentially unfolding within an ending diagonal.

This narrowing wedge often signals buyer exhaustion and precedes a retracement.

The RSI supports this outlook, showing a bearish divergence. Higher price highs are not supported by new RSI highs.

Following wave (v), we anticipate an ABC corrective sequence targeting a retracement between the current move’s 0.786 and 0.618 levels.

Based on nearby support, the likely zone for wave (c) lies near $0.061, aligned with the bottom of the previous wave (ii).

This short-term correction would reset momentum and pave the way for the next bullish impulse, potentially wave (iii) of a higher degree, once the market finds a stable base.

If wave (v) fails to extend much further, this could accelerate the retracement and quickly test the structure’s strength.

A breakdown below $0.061 invalidates the current wave count and suggests a deeper pullback.

Key Levels to Watch

• Major Support: $0.0619 (prior wave (ii) low).
• Immediate Resistance: $0.0826 (0.618 Fib retracement).
• Breakout Confirmation: Sustained move above $0.0958.
• Invalidation Level: Break below $0.052.
• Fractal Watch Zone: $0.095–$0.107 (target zone for wave (iii)).