Kaspa’s woes continued today after dipping 5% to test the key support level of $0.075. It has now wiped out much of the gains made throughout the last half of 2024.
What is the next price action for this altcoin?
On Thursday, March. 27, Kaspa prices crashed by more than 4% to test the key resistance of $0.75.
Today’s slip in prices compound Kaspa’s losses for the week 7% and by more than 17% in the month.
For more than two months, KAS has been struggling below $0.9, after slipping below the key resistance of $0.137.
The proposed Solana killer now trades more than 63% below the all-time high set in July 2024.
Why is KAS Token Price Falling?
Among the top factors driving the KAS token price down is the broader market dynamics.
The crypto space has been widely volatile, causing massive price fluctuations for all the popular cryptocurrencies.
Tier 2 and 3 altcoins like KAS have been disproportionately affected by the tariff-triggered market uncertainty.
These tariffs have caused a shift in market-wide investor sentiment and forced the market to lean bearishly.
There have also been growing trader concerns about mining and reward reductions.
Discussions within the Kaspa community have highlighted apprehensions regarding mining profitability.
Reports suggest that mining rewards are decreasing, leading to questions about the sustainability and attractiveness of mining KAS.
This sentiment has had a significant influence on investor confidence and continually exerted downward pressure on the coin’s price.
Kaspa’s Next Price Action
After crashing below $0.57 earlier in the month, Kaspa has started showing signs of recovery.
On the daily timeframe, multiple technical indicators suggest that KAS is about to post a bullish reversal.
For instance, the MACD line (blue) is above the signal line (orange), indicating a possible bullish crossover. The RSI is at 44.07, which is neutral to slightly bearish.
For a bullish reversal to be confirmed KAS must break above $0.0753 and sustain its price above this price level.
On the contrary, a drop below $0.0679 support could lead to further downside toward $0.060 or lower.
All in all, Kaspa’s recovery hinges somewhat on broader market stabilization as well. With market volatility persisting, traders are advised to approach with caution and closely monitor the coin’s technical levels before making an investment decision.
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- A Promising And Welcome Evolution On Crypto’s Leading Indicator Chart (March 24th)
- The Dates & Data Points To Watch In The Next 3 Weeks (March 17th)
- The Time Window as of March 14 Should Bring Relief (March 11th)
- Buy The Dip Is Here (March 1st)
