Kaspa (KAS) has seen a significant 45% decline from its all-time high (ATH), leading to speculation about a potential recovery in the near future.
Crypto analyst King Crypto has shared his thoughts on the recent dip, expressing optimism about Kaspa’s ability to bounce back despite the current downturn.
King Crypto’s insights, along with the latest technical chart analysis, suggest that although the asset has faced considerable challenges, increasing buyer interest at lower levels could indicate a potential reversal.
Kaspa (KAS) Technical Analysis: Downtrend Signals Potential Bottom
The price has dropped below several support levels, falling significantly from its ATH, which points to a persistent downward trend on the Kaspa chart. According to King Crypto, the 20-day and 50-day moving averages (MA) are showing a negative trend, with the shorter-term 20 MA currently below the 50 MA.
This alignment typically signals continued selling pressure. However, recent price movements suggest a potential bottoming pattern, indicating that the asset may be finding a strong support level where buyers are stepping in.
King Crypto’s tweet echoes this sentiment, mentioning “max bidding” at the bottom level. This term implies heightened buying interest at current prices, which could lay the groundwork for a price rebound. Despite the bearish momentum on the chart, this accumulation phase might mark a turning point for the asset.
Additionally, the Moving Average Convergence Divergence (MACD) indicator also shows bearish momentum. However, a crossover or upward shift in the MACD could signal a potential trend reversal, further supporting this outlook.
Key Support and Resistance Levels
Technical analysis reveals that Kaspa’s price is trading near a critical support zone, labeled as the “Bottom” level on the chart. This support area is seen as a key zone for buyer interest, with a potential reversal forming if buying pressure continues.
If Kaspa’s price rebounds from this level, it will face Resistance 1 ($0.116) as the first significant hurdle. A breakout above this level could indicate renewed bullish momentum, potentially shifting market sentiment.
Further up lies Resistance 2 ($0.1298), a stronger resistance level that could present additional challenges for Kaspa’s upward movement. King Crypto agrees that breaking through this higher resistance could pave the way for a longer-term uptrend, provided that buying interest remains strong.