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đ Be alert, Kaspa (KAS) prices could slip even steeper
Kaspa (KAS). Kaspa is a project that uses the same proof-of-work (PoW) mechanism as Bitcoin.
While the price of KAS has flown more than 400% in the last 365 days, the latest data reveals that KAS may have a hard time regaining its momentum.
đ Kaspa Price Threatened to Collapse due to Liquidation of Long Positions Ivestors immediately sell them
Kaspa's position which is currently perched below the Exponential Moving Average (EMA) supports the statement above.
This indicator highlights price changes and provides insight into the short-term as well as long-term trends of a crypto asset. This analysis focuses on the short-term EMA â specifically, the 20 EMA (blue).
For most of July, KAS traded above the EMA, marking a bullish trend. This is one of the reasons why the price was successful at printing US$0.18 previously. At the time of publication, the asset is trading below the EMA 20, indicating a bearish trend. The last time the price of CASH fell by 20%, its value reached US$0.13.
Following the recent downtrend, long liquidations in the market were recorded as 15x more severe than short positions. As a reminder, liquidation occurs when a crypto exchange forcibly closes a trading position because there is no longer enough margin to cover the position, meaning the trade must be completed.
Therefore, the looming long liquidation proves that the downward price action of KAS is having a negative impact on the traders who bet on the price rising. However, it is worth noting that liquidations can also influence price trends.
From a trading perspective, surging long liquidations will push the support level below it. Thus, Kaspa's next move could be a significant downtrend below its current value.
If selling pressure strengthens, the chart above shows that this altcoin may be ready to experience a nominal decline to the 38.2% Fibonacci retracement level, namely US$0.13 đ
