Kaspa stands out as a rare cryptocurrency in 2023, bucking the overall market trend. It embarked on an upward trajectory from the beginning of the year, surging by over 1150% since January.
Although it reached an all-time high and subsequently experienced a 50% decline in September, the current scenario involves a critical resistance level flirting just beneath the previous ATH.
The question that arises is whether Kaspa can break through and set a new all-time high, or if it will face a rejection and a slide downward once more.
KAS price reached its all-time high on August 6, when it touched the $0.0052 level. From there, a larger downtrend began, with the price falling down to $0.032 on August 29, recording a 39% decrease.
This was likely an ABC correction, characterized by a three-wave decline. Following its conclusion, a recovery began, with the price initially attempting to retest the descending resistance level at $0.038 on August 29. However, it was subsequently pushed down for a retest of the previous low at $0.032 on September 5.
This retest established a horizontal support and resulted in the beginning of a large uptrend. KAS price made a breakout above its descending resistance level, which signaled a bullish upturn.
At its peak during the recovery, the price reached $0.050, just shy of the all-time high range. Can it sustain this upward momentum and surpass this resistance level?
The price experienced a modest 12% pullback on September 5, but it has since resumed its upward momentum, recovering all previous losses and continuing its ascent.
The RSI is currently perched at 72% on the hourly chart, hinting at an approach to overbought territory. This suggests that the recent upswing might have limited potential. Furthermore, the wave structure implies that the uptrend, which extended until September 5, may have concluded, with the current upward movement appearing to be of a corrective nature, foreshadowing a potential downturn.
A decisive breach of the $0.050 resistance level could propel the price to a new all-time high. Conversely, swift rejection and a return to a downtrend would likely signal the onset of a more significant downward trend.
In the event of a downturn, the price target stands at $0.038, corresponding to the 0.618 Fibonacci retracement level at its optimal point.
Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.