Kaspa (KAS) is showing signs of weakness on higher timeframes, despite short-term attempts at recovery. While the token recently bounced off a key support level, persistent selling pressure and bearish technicals suggest that investors should tread carefully.
🕳️ December Breakout Turns Into a Bull Trap
In December 2024, KAS briefly broke above its August–September highs, sparking hopes of a sustained rally. However, this move quickly reversed, revealing itself as a liquidity trap. The price plummeted by over 70%, bottoming out near $0.052 in March 2025.
Since then, even as Bitcoin surged from $76K to $111K, Kaspa has struggled to reclaim lost ground. A key resistance zone near $0.126—a bearish order block from January—has repeatedly rejected bullish attempts.
📊 Technical Indicators Flash Red
- Relative Strength Index (RSI): Remains below 50, indicating bearish momentum.
- On-Balance Volume (OBV): Has been in a steady decline since 2024, signaling consistent sell-side pressure.
- Price Range: KAS is currently trading within a range between $0.06 and $0.117, with the midpoint at $0.088 acting as a key resistance.
While a short-term bounce toward $0.088 is possible, the broader trend remains bearish, and any upside may be limited unless volume and sentiment shift dramatically.
⚠️ What Traders Should Watch
- A retest of the $0.088 zone could offer shorting opportunities if rejected.
- A break above $0.117 with strong volume would be needed to flip the long-term structure bullish.
- Until then, caution is warranted, especially for long-term holders.
