Despite Crypto Drop, Kaspa Maintains Uptrend: Analysis for August 15, 2024

After a 40% drop due to the overall market pullback, the Kaspa crypto manages to preserve its bullish trend. Let’s take a look at the future outlook for the KAS price.

Location of Kaspa (KAS)

As Kaspa hit a new ATH at $0.21, the crypto market was revised downward, 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 attracted buying interest that seems to be defended until today. Thus, Kaspa re-entered the support identified around $0.145 to mark a new high at $0.18. At the time of writing, the price of Kaspa is trading around $0.166.

At present, the crypto price is in a consolidation phase. This, taking place above the last support previously notified, has every interest in arousing the interest of buyers to allow KAS to continue its rise. In the opposite case, this could confirm a bearish reversal in the short term. As for the medium-long term trend of the cryptocurrency, it continues to be bullish, as evidenced by the structure of KAS. This can also be supported by the fact that the 50 and 200-day moving averages of KASPA are below the current price of the crypto and continue to be oriented upwards. On the momentum side of KAS, although it has subtly rebounded, it is not surprising that it is generally in decline, as evidenced by its price as well as its oscillators.

The current technical analysis was carried out in collaboration with Elie FT, a passionate investor and trader in the cryptocurrency market. Now a trainer at Family Tradinga community of thousands of self-employed traders active since 2017. You will find Lives, educational content and mutual assistance around the financial markets in a professional and friendly atmosphere.

Focus on KAS/USDT derivatives

The recent Kaspa fluctuations have unsurprisingly led to a decrease in open interest on KAS/USDT perpetual contracts. This shows a downward revision of speculative interest during the recent fluctuations of the crypto. The decrease in CVD as well as the funding rate indicates a recent dominant selling sentiment. As for liquidations, although they are now stable, we can observe that a spike was recorded on the buying side during the market decline. This illustrates a recent phase of capitulation of buyers on the cryptocurrency

The heatmap of KAS/USDT liquidations over the past three months shows that the crypto has reached a liquidation zone at $0.128. It appears that this zone has triggered buying interest, as Kaspa’s price has been revised higher from this level. Now, the notable liquidation zones are on either side of the current price. Above this, we can identify the $0.204 zone and just above this, the $0.21 zone. Below this, we can see the $0.123 zone and just below this, the $0.119 zone. As the price approaches these levels, it could trigger a massive trigger of orders, increasing the risk of a period of heightened volatility for Solana. These zones therefore represent a crucial point of interest for investors.

Assumptions for the Kaspa (KAS) course

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

• If Kaspa price fails to hold above $0.145, we could be looking at a return to the $0.124 levels. The next support to consider, if the bearish move continues, would be around $0.12. Further down, we can note the support at $0.107. At this point, this would represent a decline of around 35%.

Conclusion

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