After enduring a prolonged period of decline in the past month, Kaspa [KAS] has staged an impressive recovery. As of the latest data, the altcoin was trading at $0.1611, marking a substantial 7.91% increase in value over the past day and 0.47% over the week.
With the price rebound, trading activities and demand have picked up, leading to a remarkable 68.83% surge in trading volume to reach $44.9 million. Concurrently, the market capitalization has also risen by 8.00% to $3.9 billion.
Before this positive momentum, KAS had been on a downward trajectory, declining by 4.14% over the previous month. Despite the recent uptick, Kaspa still lags 20% below its all-time high (ATH) of $0.2, observed on 1st August 2024.
Following this significant market shift, analysts have expressed optimism, with some foreseeing the potential for new ATHs. For instance, Kyledoops has hinted at an impending new record high.
Current Market Sentiment
Analyst Kyledoops highlighted Kaspa’s dip below its Exponential Moving Average (EMA), noting that historically, such moves preceded significant surges in value for KAS.
Based on this analysis, the outlook is positive for KAS, indicating a possible new ATH post the recent dip and subsequent recovery.
Insights from KAS Charts
Analyzing the charts, CryptoCrypto suggests that Kaspa is currently witnessing a strong upward movement.
Notably, the Relative Strength Index (RSI) for Kaspa has spiked from 34 to 50, signaling a decrease in selling pressure and a rise in buying activity. This signifies a breakout from the downtrend, with signs of the market transitioning into an upward trend.
Moreover, an Advance Decline Ratio (ADR) of 1.96 indicates a bullish sentiment, with assets showing more advancement than decline. This healthy buying pressure bodes well for KAS, serving as a robust bullish indicator.
Further supporting the positive trend, long liquidations for Kaspa have dropped significantly, from $119.7k to $785 at present, underscoring investor confidence in the coin’s future potential.
Additionally, the growing demand for long positions, reflected in a positive OI weighted funding rate, further reinforces the momentum towards potential gains.
Considering these factors, the breakout from the recent downtrend sets the stage for further price gains, with KAS expected to challenge the $0.184 resistance level if the current market conditions persist.