• Kaspa’s price was trading at $0.13 after briefly escaping a death cross in early May.

• The RSI shows that there is still considerable room for growth as the altcoin is in the bullish zone.

• Open interest increased by $6 million in 24 hours, proving investors’ conviction and optimism.

The price of Kaspa (KAS) is observing positive signals from its investors and the broader market is also supporting a rebound.

There is a strong chance that the altcoin will set a monthly high in May, which could push KAS to a critical price point.

Kaspa holders invest funds

Kaspa’s price is rising, and investors are helping to fuel this rally. This is likely due to a sudden surge in open interest (OI). Open interest refers to the total number of unsettled derivative contracts (such as options or futures) that have not yet been settled.

It is a key indicator of market activity and liquidity, showing how much money is flowing in or out of the market.

Over the past 24 hours, OI has surged by $6 million, the highest single-day level this quarter. The last time Kaspa noticed $6 million inflows into OI was in early April, over a two-week period.

Kaspa open interest. Source: Coinglass

This suggests that investors are looking to take advantage of current opportunities.

Secondly, the broader market is also showing bullish sentiment, which is evident in the Relative Strength Index (RSI). The RSI is a momentum oscillator that measures the speed and change of price movements on a scale from 0 to 100.

Typically, an RSI above 70 indicates overbought conditions, while an RSI below 30 indicates oversold conditions.

Casper RSI. Source: TradingView

Currently, KAS is in the bullish zone above the neutral mark at 50.0 but below the overbought threshold. This will provide enough room for the altcoin to grow as we progress.

KAS Price Prediction: A Rally Ahead?

Kaspa’s price is changing hands at $0.13 at the time of writing after escaping a death cross earlier this month. A death cross is a bearish pattern that occurs when the long-term 200-day exponential moving average (EMA) crosses above the short-term 50-day EMA. This usually leads to a correction.

But KAS escaped this and is recovering, gradually approaching the $0.14 resistance level. Turning this resistance into support would mark a 12% rally and take the altcoin towards $0.15, a key technical and psychological price level.

Kaspa price analysis. Source: TradingView

However, a failed breakout could cause Kaspa’s price to fall back to the $0.11 support level. Losing this support would extend the decline and invalidate the bullish outlook.

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