Key Takeaways
- KAS broke above the upper trendline despite forming a descending triangle, signaling a bullish reversal.
- The BBP flipped green, suggesting buyer dominance, with the CMF surging to 0.18, confirming rising demand.
- Trading volume skyrocketed from under $50 million to over $150 million, reinforcing bullish momentum.
- KAS has moved above its 20-day and 50-day EMAs, indicating that it could rise to the 0.382 Fibonacci level.
Kaspa (KAS), one of the few cryptocurrencies still utilizing the Proof-of-Work (PoW) consensus mechanism alongside Bitcoin (BTC), is riding high among today’s top gainers. In the past 24 hours, Kaspa bulls have pushed the price up by 12%, climbing to $0.093.
This price rally comes alongside a spike in trading volume, indicating a shift in market sentiment toward the altcoin. Given these changes, KAS could be on the verge of a substantial uptrend. Here’s why KAS might continue to rise.
Kaspa Defies Bearish Pattern
Between Feb. 17 and April 10, KAS price plummeted from $0.11 to $0.058. Eventually, this decline helped form a descending triangle on the daily chart.
The descending triangle, a bearish pattern, saw KAS price form horizontal support near $0.058. But instead of dropping below this support level to validate the bullish trend, Kaspa bulls ensured that the altcoin rose above the upper falling trendline.
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CCN confirmed this after assessing the daily chart, which shows a hike in Bull-Bear Power (BBP). The BBP measures the strength of bulls (buyers) compared to bears (sellers).
When the BBP rating is negative, bears are dominant. Hence, the price is likely to drop.
But in this case, the BBP has flashed a green histogram bar, indicating that Kaspa’s price could continue climbing. A thorough examination of the Chaikin Money Flow (CMF) also validates this outlook.
At press time, the CMF has surged to 0.18, reinforcing the bullish bias around KAS. Should this trend continue, KAS price is likely to follow in the same direction.
Demand Builds Fast
Looking at it from an on-chain perspective, CCN observed that the altcoin’s trading volume has also increased. Yesterday, April 21, Kaspa’s volume was less than $50 million.
As of this writing, the figure has increased above $150 million. Typically, if the price and volume increase, more buyers step in to support the move.
Since this is the case with the altcoin, KAS bulls might ensure that the recent rally continues.
KAS Price Analysis: Altcoin Charts Bullish Path
Zooming into the daily chart again, we noticed that Kaspa’s price has risen above the key Exponential Moving Averages (EMAs).
Specifically, the altcoin’s value has risen above the 50 EMA (yellow) and 20 EMA (blue). Technically, such a crossover means that price can continue to surge.
Thus, if Kaspa bulls keep up the pressure, the price might quickly climb to $0.10 near the 0.618 golden pocket ratio. If validated, the next target for KAS could be an increase toward the 0.382 Fibonacci level at $0.14.
On the flip side, if the volume around the cryptocurrency drops, the price could decline below the key EMAs.
The bullish thesis might be invalidated in this instance, and the KAS price could slide to $0.068.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
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