Kaspa (KAS) has officially entered a bear market, according to an analysis by Crypto MindSet.
The analyst warns that the cryptocurrency’s price action shows strong bearish signals, with key indicators pointing to further downside. Kaspa has fallen below crucial levels, confirming a prolonged downturn. He advises to exercise caution, as technical indicators signal continued weakness.
What you'll learn 👉
Kaspa Bearish Market Structure Confirmed
The analyst emphasizes that Kaspa’s price is below the 50-day and 200-day moving averages, a critical sign of bearish momentum. A death cross occurred in October, where the 50-day moving average crossed below the 200-day. This confirms the downtrend, with no signs of recovery unless Kaspa breaks back above these levels.
The cryptocurrency also broke below a key support level at $0.10, with a candle closing under this threshold. Remaining under this threshold on daily or weekly charts indicates potential additional drops.
According to the expert, Kaspa’s value declined by 30% from $0.10 to $0.07, indicating a substantial dip. At press time, KAS trades at $0.08334. This downturn might prolong the bear market for several months or possibly years.
The analysis indicates that Kaspa has been in a topping phase for 15 months, pointing toward a transition into a full bear market cycle.
Markets usually undergo a cycle consisting of four stages: the bull market (stage 2), the topping phase (stage 3), and the bear market (stage 4). This change might maintain Kaspa in a continued downtrend unless it regains the 200-day moving average.
Read also: Monero (XMR) Price Hits Critical Resistance – Key Levels to Watch
Expert’s KAS Trading Strategy
In a bearish market, the analyst suggests shorting as the most effective trading strategy. Two key approaches are outlined:
- Shorting rallies – Entering short positions when the price temporarily bounces within a downtrend.
- Shorting breakdowns – Selling when the price falls below key support levels.
A recent short trade setup involved entering at $0.0116 and adding more shorts at $0.0099, securing nearly 40% profit in four days.
KAS Technical Indicators Show No Signs of Recovery
Further reinforcing the bearish outlook, the analyst highlights weak momentum signals. The RSI has shown bearish divergence for over a year, with lower highs indicating weakening buying pressure. Additionally, the monthly stochastic RSI is trending downward, suggesting the absence of bullish momentum.
The analyst stresses the importance of risk management, urging traders to avoid blindly buying dips. Using stop-losses to protect capital is advised, along with learning proper trading strategies.
Kaspa’s future trajectory depends on whether it can reclaim the 200-day moving average. Until then, lower prices are expected, and traders are advised to stay cautious and monitor the weekly close to confirm the next move.
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