Kaspa (KAS) has been under the spotlight lately, as the price action displays signs of weakness, despite its earlier bullish sentiment. In a tweet by top crypto analyst Zero Ika, he shared insights on KAS using it as an educational example to explain market patterns.
The post highlights the bearish signals in Kaspa’s price action, mentioning a potential Wyckoff distribution schematic and other patterns that have influenced the recent price drop.
What you'll learn 👉
Weakness Confirmed in Kaspa’s Price Action
According to Zero Ika’s analysis, Kaspa’s price has been weakening since mid-August, when the altcoin was hovering around $0.1544. He identified several key bearish signals, including the coin’s drop below significant levels such as the November 2023 high, the uptrend trendline, and two equal lows (EQLs).
Additionally, a bearish “3 drives” pattern further hinted at a price decline. Zero Ika pointed out that the fundamentals surrounding Kaspa, including the rising hashrate and claims that it offers better technology than Bitcoin, have been widely promoted by supporters.
However, he noted that these narratives have ignored the warning signs in the price action.
Kaspa Price Drops Below $0.15
Two months after Zero Ika’s initial warning, Kaspa has broken below the $0.15 level, validating the bearish outlook he shared. Despite this downturn, the analyst made it clear that this does not necessarily mark a macro top for the altcoin. He suggested that Kaspa still has room within the broader cycle, but its bearish trend is likely to continue in the short term.
He warned traders and investors to respect price action patterns and take profits when possible, emphasizing the importance of following technical indicators rather than relying solely on the altcoin’s fundamentals.
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Kaspa’s Current Market Status
As of today, Kaspa’s price stands at $0.1345, according to data from CoinGecko. The coin has experienced a slight 0.13% increase in the past day, although it has dropped by 8.43% over the past week.
With a 24-hour trading volume of over $40 million, the market sentiment surrounding Kaspa remains cautious amid its current bearish outlook. In conclusion, while Kaspa’s long-term potential may remain intact, recent price action suggests a period of uncertainty.
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