Key Takeaways
The daily chart shows that momentum is recovering from oversold conditions.
The recent price action for Kaspa (KAS) shows notable daily and 1-hour chart developments, providing insights into its medium- and short-term trends.
The daily chart reflects a completed corrective ABC pattern after a five-wave impulse. Wave C reached $0.10 on Nov 4, a 50% drop in price after wave 5 peaked at $0.208 on Jul 31.
This level served as a solid demand zone, initiating the upward movement. The price now trades at $0.147, slightly below the 0.5 Fibonacci retracement, which acts as immediate resistance.
A breakout above $0.166 (0.382) could confirm the beginning of a new impulsive phase, targeting previous highs around $0.208 and beyond.
The daily chart’s Relative Strength Index (RSI) supports this outlook, showing recovery from oversold levels near 30 to neutral territory.
This uptick in momentum suggests growing buyer interest, although a rejection near $0.166 could lead to a retest of support zones.
Horizontal support levels at $0.1074 and $0.095 remain critical for sustaining the bullish structure. Any breakdown below these levels could invalidate the bullish thesis and lead to further downside.
On the 1-hour chart, the price is in the early stages of a five-wave Elliott Wave structure. Wave 1 completed at $0.189, followed by Wave 2 retracing to $0.11, near the 0.786 Fibonacci level.
This retracement aligns with a typical correction for Wave 2, suggesting that Wave 3 is underway.
Wave 3 is expected to target higher Fibonacci extensions, with $0.208 being a key bullish target. Within this wave, smaller sub-waves indicate intermediate resistances at $0.182 (0.236 Fibonacci) and $0.208 (previous high).
A brief correction in Wave 4 might follow, retracing to $0.182 before a final push in Wave 5 to the $0.270 region.
The RSI on the 1-hour chart has entered neutral to slightly overbought territory, suggesting that the initial phase of Wave 3 is gaining momentum. Traders should watch for volume increases to confirm the breakout.
Failure to sustain above $0.145 would indicate weakness and may lead to a retest of the 0.618 Fibonacci level at $0.14103 before resuming the upward trend.
Daily Chart (Higher Time Frame):