Proof-of-work (PoW) cryptocurrency Kaspa (KAS) has seen a 28% drop in value over the past month. At press time, the altcoin is trading at $0.108. Increasing bearish pressure indicates the possibility of a prolonged decline.
This analysis explores the key price targets that holders of the coin need to watch.
Kaspa's death cross leads to losses
BeInCrypto’s examination of the KAS/USD daily chart revealed a death cross on Oct. 22. This pattern occurs when an asset’s short-term moving average (50-day EMA) crosses below the long-term moving average (200-day EMA).
Furthermore, this crossover is a bearish signal, suggesting a weakening trend, with recent price declines outweighing long-term gains.
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Kaspa's Death Cross. Source: TradingView
Therefore, KAS’s death cross signals further downside, especially given the bearish signals in other indicators, such as its moving average convergence/divergence (MACD) indicator — which tracks trend direction, changes, and potential price reversal points. As of now, KAS’s MACD line (blue) is below its signal line (orange) and zero line.
However, it remaining below the signal line is seen as a bearish indicator, suggesting that the short-term momentum is weaker than the longer-term trend. Thus, the asset's recent performance is slowing down compared to its longer-term trend, which could lead to increased selling pressure.
MACD from Kaspa. Source: TradingView
Furthermore, when both the MACD line and the signal line are below the zero line, as in the case of KAS, it suggests that downside momentum is prevailing.
KAS Price Prediction: The Battle at $0.104 Support Level
At press time, KAS is trading at $0.108, just above the support at $0.104. However, with increasing selling pressure, the coin’s bulls may struggle to defend this critical price level. If the price breaks below $0.104, it could lead to a drop to $0.076, a level last seen in November 2023.
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Kaspa price analysis. Source: TradingView
However, this bearish outlook could be invalidated if market sentiment towards KAS shifts to bullish. Should this occur, the $0.104 support floor could hold, potentially propelling the coin towards $0.16.
The post Kaspa (KAS) Drop of 28% Raises Bearish Fears appeared first on BeInCrypto.
