Kaspa [KAS] crypto faces challenge of rebounding to $0.12 after 25% price drop

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

Despite this decline, some on-chain metrics and technical indicators have suggested a possible reversal in the trend. As a result, CryptoCrypto conducted a thorough investigation to assess the likelihood of a bullish takeover.

Kaspa’s Recent Market Downturn

Over the last 30 days, KAS witnessed a sharp decline of more than 25% in its price. Additionally, in just the past seven days, the value of the token plunged by over 8%. As of the latest data, Kaspa was being traded at $0.11, with a market capitalization exceeding $2.7 billion.

Despite the significant decrease, certain on-chain indicators pointed towards a potential bullish reversal. Analysis from Santiment’s data revealed that KAS’s social dominance had increased, indicating a growing popularity within the cryptocurrency community.

Following a notable drop, KAS’s weighted sentiment entered positive territory, signaling an increase in bullish sentiment towards the token.

Subsequent to a sharp incline, the trading volume of Kaspa began to decrease, typically indicative of a shift in trend direction.

Further examination of Coinglass’ data by CryptoCrypto unveiled other encouraging metrics. For instance, the Open Interest for KAS saw a decline, suggesting an increased likelihood of price fluctuations.

Moreover, the long/short ratio for KAS started to rise, indicating a prevalence of long positions over short positions—a positive indication for a bullish trend.

Future Trajectory of KAS

Delving into the technical aspects, CryptoCrypto inspected KAS’s daily chart to identify potential signals of a trend reversal. Notably, Kaspa’s price touched the lower Bollinger Bands, with the token testing a critical support level at the time of analysis. Such occurrences are often followed by price upswings.

Following the decline, the Relative Strength Index (RSI) for the token showed a slight upward movement. Furthermore, the MACD indicator hinted at a probable bullish crossover.

In the event of a bullish reversal, it would not be unexpected to witness KAS targeting the $0.122 mark initially. This is supported by the observation that Kaspa’s liquidations are likely to surge at that level.

Typically, an increase in liquidations leads to short-term price adjustments. Should KAS surpass that resistance level, it could potentially rally towards its peak in August.