Kaspa’s Current Price Action and Demand Zone
Kaspa (KAS), a cryptocurrency known for its innovative technology, is currently experiencing a period of consolidation, holding firmly within a tight range. After a notable slide from its recent highs, the token is now hovering around $0.085, sitting squarely inside a key demand zone. While short-term momentum appears weak and sellers currently hold the upper hand, subtle signals from technical indicators are hinting at a potential shift.
The Moving Average Convergence Divergence (MACD), for instance, shows an early sign of life for buyers, suggesting that a small bounce could be on the horizon if buying pressure steps in. The critical question for traders and investors now revolves around whether the established $0.082–$0.085 support area can continue to hold strong, or if bearish forces will manage to push the price lower. This current price action sets the stage for a pivotal moment, as the market awaits a decisive shift that could dictate Kaspa’s short-term trajectory.
Analysing the 4-Hour Chart Overview
A closer look at Kaspa’s 4-hour chart provides crucial insights into its current market behaviour. The chart reveals that the KAS price is cooling off following a sharp drop from its recent high of $0.122. The candles on the 4-hour chart are notably small and tight, a classic sign of market indecision where neither buyers nor sellers are able to assert dominant control. While sellers still maintain a presence, buyers haven’t yet generated sufficient momentum to push the price back above the broken upward trendline that was lost on July 28–29.
This indicates that Kaspa is currently in a short-term bearish mode, characterised by the formation of lower highs since the end of July. The price remains stuck within the $0.082–$0.085 range, and a decisive break below this critical support could quickly send it towards $0.077 or even $0.070 if selling pressure intensifies. For any real recovery to take hold, KAS needs to decisively push above the $0.090 mark, which could then spark a move towards $0.095–$0.10, providing bulls with the necessary momentum.
Technical Indicators Hinting at Future Moves
A comprehensive review of Kaspa’s technical indicators, particularly on the hourly timeframe, offers a detailed perspective on its current market health and potential future moves. Most of the indicators are currently leaning bearish, reflecting the prevailing sentiment. However, the MACD (12,26) stands out as the sole indicator showing an early sign of life for buyers, signalling a potential bullish crossover. Despite this, the overall trend remains weak, as indicated by the ADX (14) value of 18.25, suggesting a lack of strong directional momentum.
The CCI (14) at -140.23 points towards bearish pressure and is nearing the oversold zone, which could precede a bounce. The RSI (14) is neutral at 46.82, while the ROC (Rate of Change) at -0.516 indicates mild selling pressure. The Bull/Bear Power (13) at -0.0015 shows that bears still hold a slight dominance. This mixed bag of signals suggests that while a short-term bounce is possible, a sustained recovery would require a significant influx of buying volume to overcome the current bearish inclinations and push KAS above key resistance levels.
Kaspa’s Liquidation Heatmap Insights
Insights from the Kaspa liquidation heatmap provide a crucial layer of understanding into potential price movements, particularly the possibility of a short squeeze. The heatmap reveals a heavy concentration of short positions clustered between $0.086 and $0.091, with a critical cluster located near $0.095. According to Kaspa Daily, over $22 million in shorts are at risk of liquidation if the KAS price reaches $0.095. This setup creates a powerful short squeeze scenario: if the price pushes above these levels, forced buy orders from liquidating short positions could trigger a rapid upward cascade, accelerating the rally.
Conversely, the cumulative long liquidation zone remains relatively flat below $0.084. This indicates that potential downside pressure from forced selling is limited compared to the substantial upside trigger presented by the short positions. Traders are now keenly watching the $0.091–$0.095 range as the pivotal zone where momentum could quickly shift, making it a key area for potential explosive price action.
Understanding Exchange Flows and Market Sentiment
On-chain data offers valuable insights into Kaspa’s market sentiment and the behaviour of its holders. Recent data from Kaspa Daily indicates that approximately 19 million KAS left known exchange wallets in the last 24 hours. This movement of coins off exchanges typically signifies that holders are transferring their assets to self-custody or intend to hold them for a longer duration. Such an outflow often reduces immediate selling pressure on the market, as tokens held off-exchange are less likely to be traded in the short term.
With the price bouncing from oversold levels and a substantial amount of liquidity sitting above current prices, traders are currently leaning cautiously bullish. This combination of reduced exchange supply and a technical bounce from oversold conditions suggests a growing underlying confidence in Kaspa’s potential. The market sentiment, while cautious, indicates a readiness for an upward move should key resistance levels be breached, reinforcing the idea that long-term holders are accumulating.
Bullish, Neutral, and Bearish Scenarios for KAS
Based on the current technical and on-chain data, several scenarios can be outlined for Kaspa’s price trajectory. In a bullish scenario, if KAS can decisively penetrate above the $0.090 resistance, it could make a strong push towards $0.095–$0.10. A sustained close back above $0.10 would provide significant momentum for bulls, potentially leading to further gains. In a neutral scenario, if the $0.082 support holds firm, Kaspa’s price might remain stuck in a sideways “chopping” action, oscillating between $0.082 and $0.090 for a while, reflecting market indecision and a lack of clear direction.
Conversely, a bearish scenario would see a break below the crucial $0.082 support. If this level fails, KAS could quickly fall to $0.077. Should sellers maintain control and selling pressure intensify, the price could even drop further to $0.070. These scenarios highlight the critical importance of the current support and resistance levels in determining Kaspa’s next short-term move.
Kaspa’s Price: Awaiting a Decisive Move Between Key Levels
Kaspa’s price is currently in a quiet, yet pivotal, spot, positioned precariously between key support and resistance levels. Momentum is thin, and the market appears to be waiting for a decisive shift that will dictate its short-term direction. Traders are closely monitoring the $0.082–$0.085 range, as whichever way the price breaks next will likely set the tone for the immediate future. A move above $0.090 is crucial for bulls to regain control and initiate a recovery.
The potential for a short squeeze, as indicated by the liquidation heatmap, adds an element of explosive upside if key resistance is breached. However, the prevailing weak trend and light volume suggest that a significant catalyst is needed to overcome current selling pressure. Kaspa’s innovative blockDAG technology and growing community support provide a solid foundation for its long-term trajectory, but the immediate path will be determined by its ability to navigate these critical price levels and attract renewed buying interest.
Read More: Kaspa Fundamentals Powering Path to $1 and Beyond
