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Kaspa (KAS/USDT) has recently shown more fluctuations, including an increase and then a decrease in the price. Technical analysis gives crucial signals regarding areas that could act as significant support and resistance to price.
Analyst dark_knight_btc shares Kaspa’s potential for the next moves and if the asset can hold above these levels, then there could be a bullish run.
KAS Hits Resistance at Upper Bollinger Band with Neutral RSI
KAS tested the upper Bollinger Band the price rose to $0.14697 before pulling back to the upper Bollinger Band. The reversal pattern that followed shows that sellers are present and are driving the price down, which could be a consolidation phase.
Currently, the Relative Strength Index (RSI) stands at 54.46 which confirms the momentum state neither overbought nor oversold.
Lower RSI readings from previous periods indicate that buying pressure has declined. This neutral stance in RSI makes the possibility of a further up move as well as a further down move open, but recent performance signals consolidation more or a short-term bearish outlook.
Analyst Observations: Strong Bounce and Approaching Resistance Levels
In the chart shared by analyst dark_knight_btc Kaspa has been supported by the 0.786 Fibonacci retracement level around $0.10483, where several technical analysts look forward to a reversal.
The strong bounce back from this level means that buyers are firmly supporting the price in this area, which may also be a bullish area. If KAS holds above this level, it may be indicating the beginning of a new upward move.
As per his chart, Kaspa is trading close to the 0.5 Fibonacci retracement level of $0.14314, which also aligns with the 50-day Simple Moving Average (SMA).
This convergence creates a strong support or resistance level which is defined as Support/Resistnce (S/R) flip that may play an important role when it comes to future direction of prices.
If the price manages to break above this level for an extended period, the higher Fibonacci retracement levels offer a target higher up to the KAS price.
Besides 0.5 for $0.14214, the analyst finds other levels of resistance at the 0.382 level of $0.15894 and the 0.236 level of $0.17852. A breakout through these levels may enable Kaspa to attain its previous all-time high ATH at $ 0.20987.
These are critical levels of resistance for a trader because they represent areas where some profit-taking may occur and additional bullish momentum if overcome.
Market Sentiment and Bullish Indicators
In addition, the analyst also highlights a bullish crossover in the MACD for Kaspa, with the MACD line moving above the signal line and green histogram bars indicating rising buying momentum.
This positive signal along with higher trading volumes shows buying pressure and supports the current trend in Kaspa’s price. Rising volume during price gains often validates an uptrend, reducing the risk of sudden reversals.
The broader crypto market also favors Kaspa’s outlook, as Bitcoin’s strength around $87,500 boosts sentiment across altcoins. If Bitcoin continues its ascent, KAS could see further momentum as investors look to the altcoin market.