Kaspa (KAS) Stabilizes After 70% Price Drop — Prepares For Breakout

Key Takeaways

• Kaspa (KAS) follows a descending resistance trend line.
• The Kaspa price fell to a new yearly low on March 12.
• Can Kaspa continue its bounce and break out?
• Interested in buying or selling KASPA KAS coin? Read our review of the best exchanges to buy and sell KASPA KAS.

The KAS price has trended downward since its all-time high in Jule 2024. A failed rally created a lower high in December, after which the downward movement accelerated.

Nevertheless, some positive Kaspa news hit this week, making KAS the biggest gainer in the crypto market. CoinMarketCap added the crypto to its “Made in America” category. This could have helped the increase, fueling speculation that KAS can be added to the strategic crypto reserve.

The KAS price also trades close to the conclusion of a bullish pattern. Will it break out, or will the long-term decline continue? Let’s find out.

KAS Price Breaks Down

The weekly time frame chart shows that KAS broke down from the $0.102 horizontal support area in the first week of February and validated it as resistance next week (red icon).

Before the breakdown, the area had provided support for 455 days. So, the close below it indicated that the bullish trend has ended, paving the way for a new, bearish one.

On March 12, the KAS price decrease culminated with a new yearly low of $0.0055, a drop of over 70% since the all-time high of $0.207. The next closest support area is $0.0045-$0.0050, created by a horizontal and Fibonacci support level.

Technical indicators are bearish. The Relative Strength Index (RSI) and Moving Average Convergence/Divergence (MACD) are falling. The RSI is below 50 while the MACD is below 0, both signs of a bearish trend.

Therefore, the long-term readings suggest the KAS price will eventually reach the support area.

Can KAS Bounce?

The daily time frame chart offers a more bullish Kaspa prediction. This is because Kaspa is trading inside a descending wedge, which is considered a bullish pattern. The price is approaching the end of the pattern, so a decisive movement will likely occur soon.

Technical indicators are leaning bullish. The MACD has generated a bullish divergence, something often present before bullish trend reversals. However, the RSI has not done the same.

Looking for a safe place to buy and sell KASPA KAS? See the leading platforms for buying and selling KASPA KAS.

If a breakout happens, the closest resistance area will be at $0.105, aligning with the long-term horizontal level.

The wave count shows a completed five-wave decline inside the wedge, another sign that a breakout is overdue. The five-wave KAS price decline is likely part of a larger A-B-C correction (red), ongoing since the all-time high.

However, the fact that waves A and C do not have a common ratio raises some doubt about whether this is the correct count.

Therefore, the weekly and daily time frames do not align, since the former is bearish while the latter is bullish. Combining them, the most likely future outlook is a KAS price breakout toward $0.105 followed by another downward movement to $0.0045-$0.0050.

Breakout Before New Lows

The long-term KAS trend is bearish because of a breakdown from the $0.0105 horizontal support area. Since the daily time frame predicts a breakout, the KAS price could initiate a relief rally first before eventually falling to new lows.