Kaspa (KAS) Price Prediction: Is a Further KAS Price Drop Imminent?

Kaspa is struggling as the crypto market hits a rough patch. Bitcoin's slide has pulled altcoins down with it, including KAS which shows concerning downward signals.

Kaspa price has slid further as the crypto market continues to trade in a bearish fashion. Bitcoin’s inability to hold onto the $70,000 resistance has seen crypto prices pull back, with altcoins struggling.

Kaspa shows concerning downward signals as it struggles to break above key resistance levels. Technical indicators suggest that more downside moves might be seen before a reversal.

Key Support Levels to Watch

Key Fib retracement levels: 0.0%- 0.236%- 0.382%- 0.5%- 0.618%

Key Bollinger Bands: lower and middle bands

Other levels to watch: $0.065-$0.070 and $0.12-$0.14

Kaspa Price Action Trend Analysis

After opening the week with a slight uptrend, Kaspa has seen selling pressure return, with prices now down over 9% on the day and nearly 29% this week.

As of writing, KAS is trading at just under $0.076, a critical level to watch as it’s the lower Bollinger Band and a key Fibonacci retracement level.

If buyers want to see a move back up towards the 2023 highs, then they’ll need to see through some tough resistance at the $0.10 mark, and the $0.12-$0.14 zone.

If selling continues then traders might want to keep an eye on the $0.065-$0.070 range, which could offer some buying opportunities. A breakdown below this zone could see prices move towards the $0.06 level.

Technical Chart Analysis

The Bollinger Bands are widening, which suggests that volatility is increasing. The price is currently trading close to the lower Bollinger Band at around $0.80, which typically indicates strong downward momentum.

The middle band, which represents the 20-day simple moving average, is trading at $0.09730, and this is a key level that buyers will need to reclaim in order to shift the technical sentiment.

The Ichimoku Cloud is also showing a bearish trend, with the price trading below the cloud. The Kiyun-Sen at $0.10814 and the Tenkan-Sen at $0.08779 show that any recovery efforts are likely to face stiff resistance.

The Chikou Span is also remaining below the price action, which further supports the bearish sentiment.

Kaspa Volume & Momentum Indicators

Volume analysis suggests that sellers are in control of the market right now. There has been a sharp increase in trading volume during the recent decline, which highlights the strong selling pressure.

Momentum indicators offer little optimism for bulls at this stage. The MACD line is sitting at -0.00166, below the signal line at -0.00538, which confirms the bearish trend.

The MACD histogram is showing slight improvement, but there are no clear signs of an impending bullish reversal just yet.

Kaspa is deep in oversold territory with an RSI at 28.93. RSI divergence is often used by traders to spot potential market reversals.

However, in a strong downtrend, assets can remain oversold for longer than you’d expect before any real recovery efforts begin.

If you’re looking for signs of life then the RSI climbing back above 30 and any bullish divergence on the MACD would be first indicators to watch out for.

For something more concrete, keep an eye on the $0.085 level near the Tenkan-Sen line - if we see some buyers step in and clear this zone then it might suggest that a potential recovery is forming.

If sellers remain in control then we can expect a test of the $0.65-$0.70 support zone. Should that fail to hold then sub-$0.060 prices become likely, which could trigger another wave of selling.