Date: Sat, March 08, 2025 | 01:22 PM GMT
The cryptocurrency market is experiencing a strong downtrend, with major altcoins struggling after their rallies in late 2024. Ethereum (ETH), for instance, has dropped from its December high of $4,000 to its current level of $2,100.
One of the hardest-hit altcoin in this downturn has been Kaspa (KAS), which has suffered a sharp 62% correction over the past 90 days, shaking investor confidence.
Source: Coinmarketcap Testing Key Support Levels
The weekly chart for Kaspa (KAS) highlights a Head & Shoulders pattern, a classic bearish reversal formation. The rejection from the right shoulder triggered a sharp breakdown from the neckline (blue-shaded area), pushing KAS toward a key price zone between $0.077 (red line resistance) and $0.06581 (green line support).
According to the Head & Shoulders pattern, there is still room for further downside, with the main support at $0.054 acting as the last defense for buyers. However, a potential rebound may be in play as MACD is showing early signs of recovery.
MACD Signals a Possible Reversal
The MACD indicator, a key momentum oscillator, is hinting at a possible shift in trend. The MACD line is attempting to cross above the signal line, while the histogram is showing weakening bearish momentum. If this bullish crossover materializes, it could indicate a potential short-term relief rally.
If KAS manages to bounce and reclaim the $0.077 resistance level, a short-term relief rally could be on the horizon, potentially leading to further upside. However, if support fails, the price may drift lower toward the $0.054 zone before finding strong buying interest.
Final Thoughts
Kaspa (KAS) is at a critical decision point. The Head & Shoulders breakdown suggests more downside risk, but MACD signals a possible bounce. A reclaim of $0.077 could spark a relief rally, while failure to hold current support may push the price toward $0.054.
Disclaimer: This article is for informational purposes only and is not financial advice. Always conduct your own research before making investment decisions.
