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Kaspa (KAS) has officially entered a bearish phase, according to an analysis by Crypto MindSet.
The analyst highlights that the cryptocurrency’s price action presents strong bearish signals, with key indicators suggesting further downside. Kaspa has dropped below critical levels, confirming a prolonged decline. He advises caution, as technical indicators continue to show weakness.
Kaspa’s Bearish Market Structure Confirmed
The analyst points out that Kaspa’s price is currently below both the 50-day and 200-day moving averages, a key indicator of bearish momentum. A death cross was observed in October, where the 50-day moving average dipped below the 200-day, reinforcing the ongoing downtrend. A recovery is unlikely unless Kaspa reclaims these levels.
Additionally, the cryptocurrency has broken below a crucial support level at $0.10, with a candle closing beneath this threshold. If it remains under this level on daily or weekly charts, further declines could follow.
According to the expert, Kaspa’s value has dropped by 30%, from $0.10 to $0.07, marking a significant decline. At the time of writing, KAS is trading at $0.08334. This downturn could extend the bearish trend for months or even years.
The analysis suggests that Kaspa has been in a topping phase for 15 months, signaling a transition into a full bear market cycle.
Market cycles typically consist of four stages: the bull market (stage 2), the topping phase (stage 3), and the bear market (stage 4). This shift may keep Kaspa in a prolonged downtrend unless it reclaims the 200-day moving average.
Read also: Monero (XMR) Price Hits Critical Resistance – Key Levels to Watch
Expert’s KAS Trading Strategy
In a bearish market, the analyst suggests that shorting may be the most effective trading strategy. Two key approaches are outlined:
- Shorting rallies – Entering short positions when the price temporarily bounces within a downtrend.
- Shorting breakdowns – Selling when the price falls below key support levels.
A recent short trade setup involved entering at $0.0116 and adding more shorts at $0.0099, resulting in nearly 40% profit within four days.
KAS Technical Indicators Show No Signs of Recovery
Further reinforcing the bearish outlook, the analyst highlights weak momentum signals. The RSI has exhibited bearish divergence for over a year, with lower highs indicating diminishing buying pressure. Additionally, the monthly stochastic RSI is trending downward, suggesting a lack of bullish momentum.
The analyst underscores the importance of risk management, advising traders to avoid blindly buying dips. Implementing stop-losses to protect capital is recommended, along with learning proper trading strategies.
Kaspa’s future trajectory hinges on whether it can reclaim the 200-day moving average. Until then, lower prices are”
Source: captainaltcoin.com