- Kaspa has experienced a sustained decline over the past month dropping by 28.20%
- After reaching oversold territory, KAS has surged by 11.19% in 48 hours and 2.87% in the past day
Since hitting an ATH of $0.207, Kaspa [KAS] has experienced a sustained decline to reach a 6-month low as predicted earlier by AMBCrypto. For the first time in six months, Kaspa dropped to $0.109 over the past week.
However, since this dip, the altcoin has shown resilience surging by 11.19%. In fact, as of this writing, Kaspa was trading at $0.12. This marked a 2.87% increase over the past day.
Prior to this, KAS was on a downward trajectory dropping by 7.88% on weekly charts. Equally, the altcoin has declined by 28.20% over the past month.
The latest price action raises questions about whether Kaspa is seeing a shift in market sentiment that could propel the altcoin towards recovery on price charts.
Source: Market Prophit
According to AMBCrypto’s analysis of Market Prophit, although the altcoin has declined over the past month, crowd sentiment remains positive.
The data shows that KAS’ crowd sentiment was positive at 0.1509, the Buzz Score is positive at 0.952 and the Crowd Z- score sentiment is 1.269. This suggests that most investors are optimistic and anticipate, Kaspa to recover and make gains on price charts.
What KAS charts suggest
Undoubtedly, the prevailing market shows that the market is warming for Kaspa’s recovery.
Source: Tradingview
For starters, Kaspa’s Relative Strength Index (RSI) has surged from 30 to 38 at press time. This indicates that buyers were attempting to gain control will the downtrend is exhausted.
With the current trend losing, buyers were entering the market to buy the dip.
Source: Coinglass
Additionally, Kaspa’s long/short ratio on a 4-hour timeframe shows that long position holders are dominating the market. With the ratio at 1.007, it suggests that most investors are bullish anticipating prices to surge.
Source: Coinglass
This was further evidenced by the fact that most perpetual accounts were taking long positions. Thus, longs account for 76.9% of total perpetual futures suggesting that investors still see a potential uptrend.
Source: Santiment
Finally, Kaspa’s Weighted Sentiment (total) showed that positive sentiments outweigh negative ones. This suggests that, after getting into oversold territory, the market is now facing a trend reversal as market sentiment has started to turn positive.
Simply put, Kaspa is seeing the potential change in fortunes. With the recent price action accompanied by positive market sentiment, KAS could recover.
Read Kaspa’s [KAS] Price Prediction 2024–2025
As such, a price recovery would see Kaspa reclaim the $0.14 resistance in the short term.
A breakout from this level would see, the altcoin challenge $0.165. Consequently, if the bears retake control and a decline hold, KAS risk a drop below $1 for the first time in 8 months.
