Kaspa [KAS] soars 13% – But THIS resistance zone signals caution!

Key Takeaways

KAS has recorded a big run, however a key resistance zone now poses a serious hurdle, with indicators of spot promoting stress nonetheless current. The buying and selling quantity stays excessive, and bullish momentum continues to construct, suggesting robust purchaser curiosity even at present resistance ranges.

Kaspa [KAS] surged by 13% prior to now 24 hours, at press time, extending a pattern of regular positive factors that has resulted in a 72% worth improve during the last 4 weeks.

Nonetheless, this bullish momentum could stall regardless of rising quantity and aggressive shopping for, as worth motion assessments a traditionally bearish resistance zone.

Bearish catalyst at play as KAS hits provide zone

Chart evaluation reveals that KAS has entered a crucial resistance space, additionally recognized as a provide zone.

This zone lies between $0.114 and $0.127 and has traditionally triggered robust worth rejections.

As an illustration, in February, when KAS briefly traded into this zone, it led to a serious drop that marked the coin’s lowest worth level of the yr.

Supply: TradingView

The same decline adopted in Could, when KAS once more touched this area and subsequently plunged towards the $0.6 vary.

At press time, KAS had examined this resistance zone and confronted minor rejection, because the candlestick turned purple. Whereas this isn’t but affirmation of a sell-off, it displays vital promoting stress at this stage.

Consumers should still have the higher hand

Regardless of the resistance, indicators counsel sellers would possibly lose out as shopping for exercise will increase.

Key metrics such because the Accumulation/Distribution (A/D) and Bull Bear Energy (BBP) point out rising bullish energy.

The A/D line displays robust accumulation, signaling extra shopping for than promoting in latest periods. Notably, accumulation quantity reached 10.18 billion KAS prior to now 24 hours, trending upward and suggesting potential for additional progress.

Supply: TradingView

Equally, BBP hit its highest level in two weeks, an indication that bulls are starting to dominate the market with extra curiosity.

This pattern means that though KAS is buying and selling inside a recognized provide zone, bulls are stepping in aggressively. Nonetheless, it stays unsure whether or not the asset will escape above this stage.

Spot merchants resume shopping for KAS

Within the final 4 days, whilst KAS rallied, spot merchants had persistently offered the token throughout centralized exchanges.

In response to information from CoinGlass, cumulative gross sales from these merchants totaled $1.48 million, reflecting bearish sentiment regardless of the rally.

Supply: CoinGlass

Apparently, promoting stress has slowed. Previously 24 hours, whole spot gross sales amounted to only $47,000, pointing to a renewed shopping for curiosity.

Whereas this means bulls are starting to build up once more within the spot market, the pattern isn’t totally bullish. Bears may nonetheless re-enter, apply downward stress, and set off a worth pullback for KAS.