Kaspa (KAS) Price Rebounds but Faces Strong Resistance at $0.10

Key Takeaways

• Kaspa (KAS) trades inside the $0.100 resistance area.
• The price trades inside a short-term parallel channel.
• Can Kaspa rebound and break out from the channel?

The Kaspa price has declined since reaching its all-time high of $0.165 in July 2024. Initially, the $0.100 horizontal area held firm, preventing a breakdown.

However, it finally shattered last week, causing a breakdown. Nevertheless, KAS rebounded quickly and now attempts to reclaim the area.

The bounce coincided with a wave of positive Kaspa news: Coinbase announced the listing of Kaspa futures, while the team announced “Powered by Kaspa” an initiative that showcases projects building on its infrastructure.

With that in mind, the key question is whether the Kaspa price can reclaim the $0.100 area and turn it into support again.

let’s dive deep into the price action and see how likely that is.

KAS Price Breaks Down

The weekly time frame chart shows that KAS has traded above the $0.100 horizontal support area since the start of 2024, reaching its all-time high of $0.165 in July.

The support area bounced four times (white icon) before losing its strength. Last week, KAS finally broke below it, reaching a low of $0.076.

Nevertheless, Kaspa bounced this week and attempted to reclaim it unsuccessfully (black icon).

As a result, the movement in the next few weeks will be critical in determining if the future trend is bullish or bearish.

A successful reclaim could take the price to new highs, while failure could trigger a drop to the next closest support, $0.050.

While the price action still offers hope for a deviation (black circle), technical indicators are decisively bearish.

The Relative Strength Index (RSI) and Moving Average Convergence/Divergence (MACD) fall below their bullish thresholds at 50 and 0, respectively.

No bullish divergence is in place, which would increase the likelihood of the KAS price reclaiming $0.100.

KAS Price Correction Over?

The wave count shows that KAS completed a five-wave upward movement (white) starting in October 2022. The ensuing decline resembles a W-X-Y corrective structure (black), where waves W:X have the same ratio.

This is common in such structures and suggests the correction is over, increasing the likelihood of a reclaim.

However, the correction is quite short relative to the previous upward movement, so it might just be the first portion of a larger decline.

However, the short-term outlook suggests the decline is over. This is because wave Y trades inside the confines of a descending parallel channel, and its sub-waves are of the same length. This points to a completed structure and indicates KAS has started an upward movement.

The fact that the price trades above the channel’s midline further reinforces this hypothesis.

A breakout from the channel could take the Kaspa price to the next closest resistance area at $0.170. It is still unclear if this would be a relief rally or an upward movement leading to a new all-time high.

Alternatively, closing below the channel’s midline will put this bullish count at risk. If that happens, KAS could decrease toward the support trend line, which is currently at $0.060.

Relief Rally Underway

Even though Kaspa’s price fell below its critical support at $0.100, the coin has shown resilience by bouncing and attempting to reclaim it.

Additionally, the wave count indicates the correction is over, and a relief rally will follow. The next closest resistance is at $0.170.