Kaspa [KAS] experienced a 5.4% increase in value on Tuesday, hinting at potential further gains in the near future. Presently, the coin’s daily chart still displays a bearish trend, but the defense of the $0.11 region by the bulls remains robust. However, concerns linger over the rapid decline from the $0.19 mark in December, which is yet to be fully addressed.
Gradual Increase in Buying Pressure
The bearish structure is evident from the fact that the most recent high on the daily timeframe was recorded at $0.1291 during the early January surge. Bulls need to surpass this level to transition the momentum in favor of a bullish trend on the 1-day chart.
The RSI currently sits at 50, close to entering bullish territory. Likewise, the OBV is showing a consistent uptrend. Although the OBV has been following a downward trajectory similar to the price, the recent spike in the altcoin’s value managed to create a higher high on the OBV, signaling strength from buyers.
Consequently, a breakthrough above $0.13 can be anticipated. Additionally, the $0.11 zone has offered strong support since March 2024. KAS has been trading within a defined range spanning from $0.11 to $0.19.
Thus, there is a favorable opportunity for swing traders to consider long positions at the current market levels.
Potential Upside Momentum for KAS
An analysis of the 1-month liquidation heatmap highlighted a significant cluster of liquidation levels within the $0.13-$0.133 range, suggesting a probable upward movement by KAS to clear this liquidity pool shortly.
Furthermore, examination of the 2-week liquidation heatmap indicated that the recent upward trend was preceded by a liquidity search near $0.11. Consequently, if history repeats itself over the next few days, Kaspa could reach $0.13-$0.14 before entering a consolidation phase.
This consolidation phase is expected to enhance liquidity on both ends of the price spectrum, allowing KAS to sweep one side before eventually rebounding. In the event of a Bitcoin [BTC] surge, a brief downward movement for KAS following $0.13 could occur before reaching new local highs.
Disclaimer: The insights shared are solely the writer’s perspective and do not constitute financial, investment, trading, or any other form of advice.