Kaspa Crypto Faces Potential Rebound to $0.12 Following 25% Price Drop

The past month has been tumultuous for Kaspa [KAS] as it experienced a notable decrease in its value, likely causing concern among its investors.

Nevertheless, certain indicators on-chain and in technical analysis suggest a possible shift in the trend toward a more positive direction. In light of this, CryptoCrypto delved deeper to assess the likelihood of bullish momentum taking charge.

Recent Decline in Kaspa’s Value

Investors in KAS faced challenges as the cryptocurrency saw a significant drop of over 25% in the past month. Specifically, in just the last seven days, the token’s value plunged by more than 8%. Currently, at the time of this report, Kaspa is trading at $0.11, with a market cap exceeding $2.7 billion.

Despite this sharp decline, some on-chain metrics suggest a potential reversal in the bearish trend. Analysis by CryptoCrypto using Santiment’s data revealed a rise in KAS’s social dominance, indicating its growing popularity in the crypto community.

Following the notable dip, the weighted sentiment for KAS transitioned into positive territory, signaling an increase in bullish sentiment surrounding the token.

Moreover, following a significant spike, Kaspa’s trading volume began to decrease, typically indicating a shift in trend. Examining Coinglass’ data, CryptoCrypto identified several other positive metrics. Notably, KAS’s Open Interest experienced a decline, suggesting a higher likelihood of price fluctuations.

Further analysis showed an uptrend in KAS’s long/short ratio, implying a prevalence of long positions over short positions, a bullish indicator.

Future Trajectory of KAS

Turning attention to technical indicators, CryptoCrypto scrutinized KAS’s daily chart to uncover signals of a potential reversal in direction. Notably, Kaspa’s price touched the lower Bollinger Bands limit, while also testing a critical support level at the time of this assessment, often preceding price surges.

Following the decline, the Relative Strength Index (RSI) for the token displayed a slight uptick, with the MACD technical indicator suggesting the likelihood of a bullish crossover.

If a bullish reversal materializes, a target price of $0.122 for KAS wouldn’t be unexpected, given the significant liquidations expected at that threshold.

Typically, a surge in liquidations tends to prompt short-term price adjustments. Surpassing this resistance level could propel KAS towards its peak in August.