Kaspa [KAS] in long-term downtrend, investors be cautious!

KAS's Journey Since December: Failure Against Key Resistance Levels

Kaspa [KAS] has been steadily conquering key resistance levels since December. However, attempts to break above the resistance have been unsuccessful. On the weekly chart, the bullish pattern only appeared during the December breakout, surpassing the local highs from August and September. But shortly after, KAS was erased from the upside, confirming that bullish expectations were just a liquidity chart to hunt for low-priced wheat. However, a 72% drop in 4 months pushed the price down to $0.052, showing the weakness of the bulls in the face of strong resistance since the beginning of the year.

Price and technical indicators: Warning signs from the sellers

In March, KAS price attacked from the lows, trying to recover along with the Bitcoin [BTC] rally. However, the bulls were not strong enough. The resistance at $0.126 from January broke KAS's upside chances, suggesting that selling pressure is still dominant. The RSI remained below the neutral 50, indicating that momentum is slowing down. The OBV continued to maintain a downtrend, clearly warning that selling volume is increasing, and the risk of a deeper decline remains intact.

Trend Continuation or New Turning Point for KAS Traders?

Source: KAS/USDT on TradingView

Daily Chart Analysis: Chance for a Temporary Recovery?

The daily chart shows a possible technical recovery as the price forms a consolidation channel between $0.06 and $0.117. The center point of the zone is $0.088. This trend reflects a positive reaction from the bottom of the falling zone, with a potential to reach $0.088 in the coming days. However, the OBV volume has continued to decline for six weeks, while the local resistance at $0.08 remains in place. Traders should be cautious, the possibility of opening a long position is currently low, while short sellers can take advantage of a retest of this supply zone to make a profit.

Caution for investors and upcoming trading strategies

In this context, technical signals show that the possibility of a rebound is quite limited. RSI and OBV analysis both show that the sellers are still dominant. Investors and traders should be wary of the possibility of further price declines, especially in the short term. It is advisable to closely monitor key support and resistance zones to make appropriate decisions. Strategies that wait for a breakout of the accumulation patterns around $0.088 to consider long-term trading or take profits from short-term positions.

Conclusion: Can KAS recover or continue to decline?

The cryptocurrency market is witnessing a polarization between buyers and sellers. With selling pressure maintaining steadily, the probability of a deeper decline is clear. The bulls need to demonstrate their strength to overcome the strong resistance at $0.088 to establish a new bottom and enter a long-term growth cycle. On the contrary, short-term investors need to remain vigilant and avoid rushing into the market when the trend is unclear. Investing in this market requires patience and accurate technical analysis skills to optimize profits in all scenarios.

Source: https://tintucbitcoin.com/kaspa-kas-trong-xu-huong-giam-dai-han-nha-dau-tu-than-trong/

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