Despite Crypto's Downturn, Kaspa Maintains its Upward Trend: Analysis of August 15, 2024

After a 40% drop due to the overall market decline, Kaspa crypto manages to maintain its upward trend. Let’s examine the future prospects for the KAS price.

Situation of Kaspa (KAS)

While Kaspa reached a new ATH at $0.21, the crypto market was revised downwards, taking KAS with it. Indeed, the crypto recorded a 40% drop and reached $0.125 in less than a week. It is at this price level that the cryptocurrency sparked buying interest that seems to be defended to this day. Thus, Kaspa re-entered the support identified around $0.145 to mark a new high at $0.18. At the time of writing, the KAS price trades around $0.166.

Currently, the crypto price is in a consolidation phase. This phase, taking place above the previously noted support, has every interest in attracting buyers’ attention to allow KAS to continue its rise. Otherwise, it could confirm a short-term bearish reversal. Regarding the medium-long term trend of the cryptocurrency, it continues to be bullish, as evidenced by the structure of KAS. These remarks can also be supported by the fact that the 50 and 200-day moving averages of KASPA are below the current crypto price and continue to trend upwards. On the side of KAS dynamics, although it has subtly rebounded, it is not surprising that it is overall declining, as evidenced by its price and its oscillators.

The current technical analysis was done in collaboration with Elie FT, an investor and passionate trader in the cryptocurrency market. Today he is a trainer at Family Trading, a community of thousands of proprietary traders active since 2017. There you will find Lives, educational content and mutual assistance around financial markets in a professional and friendly atmosphere.

Focus on KAS/USDT Derivatives

The recent fluctuations of Kaspa have unsurprisingly led to a decrease in open interest on KAS/USDT perpetual contracts. This indicates a speculative interest revised downwards during the recent fluctuations of the crypto. The decline of the CVD as well as the funding rate indicates a recently dominant bearish sentiment. Regarding liquidations, although they are now stable, we can see that a peak was recorded on the buyers’ side during the market drop. This illustrates a recent capitulation phase of buyers on the cryptocurrency.

The KAS/USDT liquidation heat map over three months shows that the crypto reached a liquidation zone at $0.128. It seems that this zone triggered a buying interest, with the Kaspa price being revised upwards from this level. Currently, notable liquidation zones are found on either side of the current price. Above, we can identify the $0.204 zone and just above, the $0.21 zone. Below the current price, we note the $0.123 zone and just below that, the $0.119 zone. The approach of the price to these levels could trigger massive orders, thus increasing the risk of a period of heightened volatility for Solana. These zones therefore represent a crucial point of interest for investors.

Hypotheses for the Kaspa (KAS) Price

• If the Kaspa price remains above $0.145, we could anticipate a bullish continuation up to the $0.18 level. The next resistance to consider, if the upward movement continues, could be at $0.19, and beyond that, we can note $0.20 and even the crypto’s ATH. At this stage, this would represent an increase approaching 26%.

• If the Kaspa price fails to stay above $0.145, we could consider a return to the $0.124 levels. The next support to consider, if the downward movement continues, would be around $0.12. Even lower, we can note the support at $0.107. At this stage, this would represent a decrease of about 35%.

Conclusion

Despite a recent drop, Kaspa is currently in a consolidation phase, supported by buyer interest around its key support. The medium-long term trend remains positive, despite signs of short-term weakness, which could signal a potential reversal if the current momentum does not improve. It will therefore be crucial to closely observe the price reaction to the different key levels to confirm or dismiss current hypotheses. It is also important to remain vigilant against potential “fake outs” and market “squeezes” in each scenario. Finally, let’s remember that these analyses are based solely on technical criteria and that cryptocurrency prices can also evolve rapidly based on other more fundamental factors.