After reaching an all-time high of $0.20 in August, the Kaspa [KAS] token witnessed a significant decline. However, the recent week has seen a notable recovery in its value.
Currently, KAS is being traded at $0.172, showing a 6.47% increase over the last seven days.
Despite facing a downward trend, the gains made over the week have outweighed previous losses, resulting in a 6.73% monthly surge depicted in green on the charts.
The price revival is strongly backed by a growing demand, evident from the surge in trading volume that rose by 14.21% to reach $60.8 million for KAS.
During the same timeframe, the market capitalization also went up by 1.56% to hit $4.2 billion.
Insights from KAS Charts
An analysis by CryptoCrypto revealed that Kaspa was undergoing a robust upward trend. This positive momentum enabled the altcoin to break free from the descending trendline on the daily charts.
This breakout has positioned KAS for further price increases.
The latest data from the Kaspa Directional Movement Index indicates a strong uptrend. With the Positive Index at 21.6 surpassing the negative index at 16.6%, it is evident that KAS is experiencing significant upward momentum.
Moreover, the Relative Strength Index has climbed to 56.81 over the past three days, indicating higher buying pressure compared to selling pressure.
The surge in buying activity signifies increased demand for the cryptocurrency among investors, reflecting a positive outlook.
Further observations indicate a rise in long positions for KAS over the past eleven days, supported by a consistent period of positive OI-Weighted Funding.
A positive OI-Weighted Funding Rate implies that long position holders are outpaying short positions, signaling bullish sentiment as more investors are expecting price gains.
Remarkably, KAS has seen minimal total liquidation for over a month since August 5th. At present, long position liquidations stand at $1.24k, with short positions at $2.34k.
This behavior indicates a highly bullish market sentiment prevailing currently.
In conclusion, the favorability of investors towards KAS has led to a rise in prices and heightened demand. Given these conditions, the altcoin is poised to achieve further growth.
Therefore, maintaining the existing market dynamics could facilitate a breakout for KAS above the $0.194 resistance level, paving the way for new price records.