Kaspa (KAS) continues its descent within a well-defined corrective structure, losing 24% weekly.
The market appears to be approaching the final stages of its complex correction, potentially preparing for a pivotal reaction near long-standing Fibonacci support.
Both structural and momentum indicators point toward a climactic low in formation.
KAS Price Analysis
The 4-hour chart reveals an extended WXY corrective structure unfolding since the July 2024 peak at $0.20.
The price is currently within the final leg of the Y wave, with subwaves (a), (b), (c), (d), and (e) nearly complete.
Price continues to descend inside a downward-sloping channel, and it now approaches its prior low of $0.0056 on March 11
Previously, we anticipated this low to be the final one, leading to a potential breakout above the descending channel.
Instead, we saw a rejection last Monday, so we are now assuming that the corrective count has one more lower low before completion.
The RSI has steadily declined alongside price action, now sitting near the oversold threshold, suggesting weakening bearish momentum.
The price structure converges with lower volatility—another hallmark of terminal corrective behavior.
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Subwave (d) of Y was recently completed with a sharp rejection at channel resistance, followed by a strong impulse downward, likely marking the onset of subwave (e).
If the current leg finalizes near the $0.0485 support, it would perfectly align with the corrective cycle’s full retracement expectations and set the stage for a higher timeframe reversal.
KAS Price Prediction
The one-hour chart supports the larger view by offering a refined breakdown of the internal structure of sub-wave (e) of wave Y.
The price has already completed most of the decline but could enter a short-term consolidation before one more push to the downside for its lower degree (b) wave to develop.
The target region for this termination lies between $0.050 and $0.045, near the 0.786 Fib retracement level.
Price has failed to breach the descending resistance and is now consolidating in a tight range just above key support.
The RSI is flatlining below 40, reflecting continued selling pressure and potential bullish divergence. Each new price low is met with slightly higher RSI lows.
Once confirmed with a bounce, this divergence would strongly support the end of sub-wave (e) and a reversal of wave Y.
Should this level hold, the next impulsive advance could initially aim toward $0.082 (0.618 retracements), followed by $0.106 (0.5 level), both critical to confirming a trend change.
However, a breakdown below $0.045 would invalidate the bullish reversal scenario and open further downside toward deeper Fib levels or trendline support extensions.
Key Levels to Watch
- Immediate Resistance: $0.0826 (0.618 Fibonacci retracement).
- Key Resistance: $0.0958 (structural resistance and invalidation zone).
- Major Resistance: $0.1066 (0.5 retracement and confluence zone).
- Support Zone: $0.0485 (0.786 Fibonacci retracement).
- Critical Support: $0.0450 (end of wave Y and trend termination).
- Short-Term Target: $0.082 if reversal initiates from current levels.
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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