Proof-of-work (PoW) cryptocurrency Kaspa (KAS) has seen its value decrease by 28% over the past month. At press time, the altcoin is trading at $0.108, with strengthening bearish pressure hinting at the possibility of an extended decline.
This analysis delves into the key price targets coin holders need to pay attention to.
Kaspa’s Death Cross Leads To Losses
BeInCrypto’s assessment of the KAS/USD one-day chart revealed the formation of a death cross on October 22. This pattern is formed when an asset’s short-term moving average (often the 50-day moving average) crosses below its long-term moving average (commonly the 200-day moving average).
This crossover is a bearish signal, suggesting a weakening trend, with recent price declines outweighing long-term price gains.
Read More: Where To Buy Kaspa (KAS): 3 Best Platforms for 2024
Kaspa Death Cross. Source: TradingView
KAS’ death cross signals more downside, especially given the bearish readings on other indicators, such as its moving average convergence/divergence (MACD) indicator — which tracks its trend direction, shifts, and potential price reversal points. As of this writing, KAS’ MACD line (blue) rests below its signal line (orange) and zero line.
The MACD line staying below the signal line is seen as a bearish signal, suggesting that the short-term momentum is weaker than the longer-term trend. It indicates that the asset’s recent performance is slowing compared to its longer trend, potentially leading to further selling pressure.
Kaspa MACD. Source: TradingView
When both the MACD and signal lines are below the zero line, as in KAS’ case, it suggests that the downward momentum is prevailing. The zero line represents the baseline for trend shifts; being below it reinforces that the market is likely bearish.
KAS Price Prediction: The Battle at $0.104 Support Level
At press time, KAS trades at $0.108, just above support at $0.104. With strengthening selling pressure, the coin’s bulls may struggle to defend this critical price level. A decline below $0.104 will trigger a plunge toward $0.076, a low last seen in November 2023.
Read more: Kaspa (KAS) Price Prediction 2024/2025/2030
Kaspa Price Analysis. Source: TradingView
However, this bearish outlook could be invalidated if market sentiment toward KAS shifts from bearish to bullish. Should this occur, the $0.104 support floor could hold, potentially propelling the coin toward $0.16.
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