Kaspa (KAS) holders might soon experience a positive shift in price, as per an analysis by CRYPTO BLOCKS. The technical examination points to the completion of a five-wave downward pattern, which could indicate that the cryptocurrency has hit a market bottom.
The analysis suggests that Kaspa is positioned for a potential upward reversal, which could yield gains for patient traders. Additionally, key technical indicators, such as the Relative Strength Index (RSI) levels and Fibonacci retracement zones, support this optimistic outlook.
Price Movement and Wave Structure
Kaspa recently concluded a five-wave downward movement, narrowly missing its $0.147 target. This sharp retracement suggests that Kaspa may have reached its bottom, potentially paving the way for a new upward wave.
According to the Elliott Wave theory, this could signal the start of the third wave, which is typically the longest and most powerful in the cycle. The analysis indicates a possible short-term rally to $0.158 before retracing to key Fibonacci levels, providing traders with a new entry point.
Technical Indicators Point to Recovery
Several technical indicators hint at a potential recovery for Kaspa. On the short-term one-hour chart, the RSI shows Kaspa nearing overbought levels, which could signal a possible pullback.
However, on the longer-term four-hour and 12-hour charts, the RSI is resetting, suggesting a higher likelihood of a bullish recovery. These longer-term indicators imply that Kaspa may be gearing up for an upward move, supported by strong market interest.
Kaspa’s market cap ranks 22nd, with a value of $3.78 billion, placing it among the top cryptocurrencies. The increased trading volume indicates growing interest in the token, further supporting the bullish outlook. The analysis suggests that Kaspa could experience a price bounce after completing the five-wave structure and reaching key Fibonacci levels.
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Optimistic Outlook for Traders
The CRYPTO BLOCKS analysis predicts that Kaspa’s next significant move will be the third wave, which is expected to bring substantial gains.
As Kaspa resets its RSI and completes its retracement, traders may find an ideal entry point before the anticipated upward wave. With volume increasing and technical indicators aligning, Kaspa could be on the”
Source: captainaltcoin.com