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The Kaspa (KAS) price has increased at an accelerated rate since July 6 and reached a new all-time high price of $0.049 on August 3.
Even though indicators have begun to show overbought conditions, there are no other imminent signs that the rally will come to an end soon.
Kaspa Price Reaches New All-Time High
The KAS price has increased since May 23, when it had just fallen to a low of $0.011. The price created several higher lows and then greatly accelerated its rate of increase on July 6.
In the 27 days since, the price has increased by 144%. The increase culminated with a new yearly high of $0.049 on August 3. The price created a bearish candlestick (red icon) but is in the process of increasing to another yearly high.
The entire increase has followed a parabolic ascending support line. Therefore, the trend remains bullish as long as this line is in place.
Moreover, the six-hour RSI supports the continuation of the increase. By using the RSI as a momentum indicator, traders can determine whether a market is overbought or oversold. Then, they can decide whether to accumulate or sell an asset.
If the RSI reading is above 50 and the trend is upward, bulls have an advantage, but if the reading is below 50, the opposite is true.
The indicator is above 50 and increasing, both signs of a bullish trend.
However, it is worth mentioning that the indicator is overbought, meaning that it shows the rally is not sustainable for a very long period of time.
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KAS Price Prediction: Where Is the Next Target?
Since the price is at an all-time high, the use of external Fib levels is required to determine where the price might reach a top. The principle behind Fib retracement levels suggests that after a considerable price movement in one direction, the price will retrace or go back partially to a previous price level before continuing in its original direction.
These levels can then be utilized to identify the highest point of potential future upward movements.
Measuring the most recent portion of the drop, the next closest resistance levels will be at $0.050 and $0.061. The targets are found by the 1.61 and 2.61 external Fib retracement resistance levels, respectively.
The price is quickly approaching the first resistance level. If it successfully breaks out, it will be expected to reach the $0.061 area.
However, if a rejection follows, KAS will likely fall to the parabola before resuming its increase to $0.061.
Despite this bullish KAS price prediction, a breakdown from the parabolic ascending support line will mean that the upward movement is complete, and the trend is now bearish. In that case, a 30% drop to $0.030 will be expected.