Kaspa [KAS] on a long-term downtrend? Here’s why it should worry investors!
- KAS has threatened and failed to interrupt previous its key resistances since December
- Regular promoting strain since 2024 means buyers ought to stay cautious of a deeper worth drop
Kaspa [KAS] examined the lows from March over the weekend. Nonetheless, it did handle to climb increased since Monday. Even so, the Layer-1 token has not had a bullish outlook on the upper timeframes since December final 12 months.
Supply: KAS/USDT on TradingView
The 1-week chart highlighted a bullish breakout in December above the native highs from August and September. Only a week after this breakout, KAS broke down, proving that the rally into these highs was a liquidity hunt.
The worth tumbled by 72% in 4 months, hitting $0.052 in March. As Bitcoin [BTC] rallied from $76k to $111k, KAS tried to get better. Nonetheless, its bulls weren’t sturdy sufficient. As soon as once more, they had been stymied on the native highs. The bearish order block at $0.126 from January rebuffed KAS bulls, sending them to the native lows as soon as once more.
The RSI highlighted that momentum was bearish, with a studying beneath impartial 50. The OBV has been sinking steadily since 2024 too, an enormous warning for long-term buyers that promoting quantity was constant and important.
What subsequent for KAS merchants and buyers?
Supply: KAS/USDT on TradingView
The 1-day chart underlined some potential for a bullish reversal. A spread formation (white) between $0.06 and $0.117, with the mid-point at $0.088, was noticed. The worth reacted positively from the vary lows, and will hit the $0.088-level within the coming days.
And but, the possibility of such a bounce appeared low. At press time, the OBV was on a downtrend for six weeks, with the $0.08 degree performing as an area resistance zone. Therefore, merchants should be cautious of going lengthy on KAS proper now. Brief sellers would possibly be capable to revenue from a retest of the $0.088 provide zone.
Disclaimer: The data introduced doesn’t represent monetary, funding, buying and selling, or different kinds of recommendation and is solely the author’s opinion
