Date: Wed, Dec 18, 2024, 07:55 AM GMT
The cryptocurrency market has been making bullish waves since November, with Bitcoin (BTC) leading the charge and smashing previous records to hit an all-time high of $108K.
However, not all tokens are riding the bullish wave. Kaspa (KAS), the Layer-1 token, is moving in the opposite direction, following its own trend. Over the past 30 days, Kaspa has seen a sharp decline of 18%, bringing its current price to $0.13 level.
Source: Coinmarketcap
Head and Shoulders Pattern
Kaspa’s price action since the start of this year has been forming a classic Head and Shoulders pattern, a bearish technical indicator that often signals a potential trend reversal.
The Left Shoulder formed earlier this year, followed by a rally to create the Head, where Kaspa achieved its all-time high of $0.2075.
Recently, Kaspa faced rejection from the $0.19 resistance level, which established the Right Shoulder. This rejection has added bearish pressure, and now the price appears to be heading downward toward the neckline support at $0.1050.
More Downside Ahead?
The Head and Shoulders formation indicates that Kaspa could be preparing for further declines, and the key level to watch is the $0.1050 neckline. This support zone is crucial because a breakdown below this level with strong selling volume would confirm the bearish trend and potentially open the door to lower price targets. On the other hand, Kaspa could also make a reversal if it reaches this support level, as buyers might step in to defend the price.
Looking at the technical indicators, Kaspa’s Relative Strength Index (RSI) currently sits around 37, approaching the oversold territory. This suggests that while the momentum remains bearish, there is a possibility of a short-term bounce near the neckline support at $0.1050.
Conclusion
Kaspa (KAS) is showing strong bearish momentum as the Head and Shoulders pattern unfolds. The price is approaching the critical neckline support at $0.1050, which will likely act as a turning point. If Kaspa breaks below this level, it could trigger further downside pressure in the days ahead. However, a reversal remains possible if buyers step in to defend the $0.1050 support zone, offering a chance for short-term recovery.
In a market where Bitcoin (BTC) continues to surge, Kaspa’s independent price movement underscores the need to monitor its technical levels carefully for any signs of a shift in trend.
Get more updates at: coinsprobe.com
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always conduct your own research before investing in cryptocurrencies.
