See More

Kaspa (KAS) Price Correction Ahead: Challenges Loom for Optimistic Bulls

2 mins
Updated by Ryan James
Join our Trading Community on Telegram

In Brief

  • Kaspa price is presently noting a bearish signal, trading under the Ichimoku Cloud.
  • Bullish bets worth nearly half a million dollars have been liquidated due to the price decline.
  • Recent liquidations and bearish RSI suggest further drawdown for KAS.
  • promo

Kaspa (KAS) price is treading downwards again after exhibiting potential for recovery over the past couple of days.

This time, however, the correction could extend, which could be a little further.

Kaspa Optimists Could Back Off

KAS traders that have been making bullish bets are losing owing to the red candlesticks on the daily chart. Following a 10% correction in Kaspa price in the last 24 hours, many long contracts witnessed liquidation.

In just two days, over $404 million worth of long liquidations have been recorded. This might keep traders from attempting another attempt at placing their bets on a price. As is, price indicators are not supportive of a rally anyway.

Kaspa Liquidations.
Kaspa Liquidations. Source: Coinglass

Read More: Where To Buy Kaspa (KAS): 3 Best Platforms for 2024

The Relative Strength Index (RSI), a momentum oscillator measuring the speed and change of price movements, is exhibiting bearishness. The indicator is currently under the neutral line marked at 50.0 after failing to breach and flip it into support.

Kaspa RSI.
Kaspa RSI. Source: TradingView

This hints at KAS noting pessimism from the investors and the broader market cues, which would result in the altcoin witnessing further drawdown.

KAS Price Prediction: What Awaits?

Kaspa’s price is trading at $0.127 at the time of writing after failing to break through the resistance of $0.145. By the looks of it, KAS will halt its decline after tagging $0.117. Should the bearishness remain intense even then, the altcoin could fall to test the next crucial support at $0.103. This would result in a 17% fall for KAS.

The Ichimoku cloud also supports this likely outcome. This is a technical analysis tool displaying support, resistance, and trend direction on a chart, which helps traders identify potential market trends. Given the candlesticks are below the cloud, the cryptocurrency will probably stick to its bearish outlook.

KAS/USDT 1-day chart.
KAS/USDT 1-day chart. Source: TradingView

Read More: How To Buy KASPA And Everything You Need to Know

On the other hand, if Kaspa’s price bounces back from the $0.117 support level, it could attempt another breach of $0.145. This would also enable the cryptocurrency to reclaim the 50 and 100-day Exponential Moving Averages, likely invalidating the bearish thesis.

Top crypto projects in the US | April 2024

Trusted

Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

Frame-2t314.png
Aaryamann Shrivastava
As a Mass Media (Journalism) graduate, my journey into cryptocurrency journalism has evolved into a distinguished role as an On-Chain Analyst over the past two and a half years. Collaborating with industry-leading media companies like FXStreet, AMBCrypto, and FXEmpire, I’ve delved deeply into the intricate realms of Crypto and Blockchain, crafting over 2,500 meticulously curated SEO-focused articles. Driven by a commitment to excellence, I remain steadfast in delivering the highest caliber...
READ FULL BIO
Sponsored
Sponsored