A long slide in the market usually raises one question for every holder. The question becomes whether the project can bounce back or if the decline signals something more serious. KAS price fell more than 80% from the $0.2 region and returned to zones last seen in September 2023. The fall surprised many followers who expected the momentum from its earlier rally to continue.
Kaspa supporters still show belief in the long-term idea behind the project. The confidence stands in contrast with the current chart, although it reflects how strongly some people connect with the technology and its potential future use cases.
Why an Analyst Still Believes Kaspa Has Life
Crypto market analyst BTCL2Sync shared his view that Kaspa remains structurally strong. His position is rooted in the belief that the project’s technical development and long-term roadmap still place it in a position to recover when market conditions shift. He acknowledged the heavy correction, although he maintained that the decline does not erase the foundational work behind the project.
This type of sentiment often reminds experienced traders of earlier phases of projects that went through painful corrections yet later regained momentum once the broader environment improved.
KAS Technical Indicators Still Point to Strong Weakness
Kaspa price continues to show a clear bearish trend across major technical indicators. Weekly readings from Investing.com highlight that the market still leans toward selling pressure.
Here is the table with the brief explanations in the Action column:
| Name | Value | Action |
|---|---|---|
| RSI (14) | 33.969 | Signals weak momentum and shows that sellers remain in control |
| MACD (12,26) | -0.013 | Confirms downward pressure and shows that momentum favors the downside |
| ADX (14) | 40.662 | Indicates a strong trend that continues to point toward a bearish direction |
| Ultimate Oscillator | 38.109 | Suggests continued selling interest and a lack of strong buying energy |
These readings show that momentum has not shifted. The price remains inside a downward structure, and the market appears to be waiting for a catalyst strong enough to flip sentiment. The chart mirrors the type of long cool down seen before large reversals in previous cycles, although no confirmation exists yet.
A deep drop often sets the stage for sharp moves once the right spark appears. KAS continues to attract curiosity because of its speed-focused architecture and its unique position in the proof-of-work space. These elements form the foundation for the belief that the project still has a future, even while the price sits near long-term lows.
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The situation resembles the early periods of recovery that other tokens experienced after extended corrections. The selling pressure appears stretched, although it has not yet created a strong bounce. The next move likely depends on whether new interest appears or if the market forms a longer consolidation.
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