After a 50% drop from its all-time high, Kaspa (KAS) has seen an 8% increase, sparking optimism for a sustained recovery. The renewed upward momentum is raising interest among traders. Here’s why analysts think the Kaspa price rally might have more room to grow.
Traders Show Renewed Confidence in Kaspa
Kaspa, a Proof-of-Work (PoW) cryptocurrency, previously reached a high of $0.20 before a significant price pullback. This drop likely reflects profit-taking by holders. Now, however, sentiment around KAS is shifting.
Data from Santiment shows that Kaspa’s Weighted Sentiment has turned positive, indicating that the majority of market comments about Kaspa are now optimistic. This positive sentiment suggests a bullish outlook that could increase demand for KAS in the near term.
Analysts like Miles Deutscher echo this optimism, suggesting that Kaspa could rally further off its recent support level.
Market Activity Supports Kaspa’s Upswing
Beyond sentiment, Open Interest in Kaspa has increased, showing growing interest and activity among traders. An uptick in Open Interest often reflects increased capital flow into the asset, signaling rising confidence in a price increase.
Kaspa Price Prediction: Potential Breakout Ahead
On the daily chart, Kaspa’s price has held steady at the $0.11 support level, which has been crucial for the recent rebound. Additionally, the formation of a falling wedge pattern, typically a bullish indicator, suggests that selling pressure is easing, with buyers gradually gaining control.
If KAS can break above the upper trendline of the wedge, it may attract further buying interest, potentially boosting its price by 44% to reach $0.17. However, if resistance holds firm at the trendline, Kaspa might face a drop to $0.10.
As Kaspa approaches a possible breakout, traders are closely watching for further signs of a rally. Will KAS hit its bullish targets, or will resistance lead to another dip?
