The price of Kaspa has recently shown signs of recovery after a prolonged downward trend. Following a local bottom reached about four days ago, the price has begun a steady increase. This raises the question of whether this marks the start of a rally toward the $1 mark.
Recent analysis indicates that Kaspa’s price had been in decline for approximately 30 days, resulting in a drop of around 20%. Crypto Hype notes the importance of this moment, suggesting that the downtrend may be nearing exhaustion, as bullish sentiment appears to be returning to the market.
A critical point of inquiry remains whether the current price level will establish a significant area of support or if further declines are imminent.
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Kaspa Bulls Re-entering the Market
Market dynamics are inherently cyclical, and it is expected that price movements will not continue downward indefinitely. Pullbacks often serve to define market direction, as evidenced by previous trading patterns. Recent technical analysis highlights the last two days as particularly significant, with indications that the bulls are beginning to re-enter the market.
To gain a clearer understanding, Crypto Hype recommends examining shorter time frames, such as the 4-hour chart, which can provide insights into trading volume dynamics. The analysis points to a key resistance level, identified through an anchored volume profile, where trading activity has been concentrated.
For the price to ascend, it must surpass this resistance level, which is crucial for any bullish momentum to sustain itself.
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Potential Rise to $0.14
There is a prevailing sentiment that the price could rise to around $0.14 in the coming days if bullish trends continue. Traders are advised to monitor the market closely, as the potential for a breakout remains contingent on overcoming the specified resistance.
The analysis also highlights a recent change in price structure, noting that after hitting a low, Kaspa has not produced a new lower low, but rather a higher low, suggesting a possible shift in market sentiment. This structural change could signify the end of the bearish trend and the beginning of a new upward trajectory.
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