In a recent video, popular crypto analyst Crypto ZX talks about the impressive performance of Kaspa (KAS) and what investors can expect from the cryptocurrency this week. As the market shows signs of slowing down with several coins in the red, Kaspa has managed to stand out, posting a 4.8% gain in the last 24 hours. Crypto ZX dives into price action and technical analysis to provide valuable insights into the potential trajectory of KAS.
What you'll learn 👉
Kaspa’s Price Action and Market Dominance
Kaspa is currently trading at $0.1639, up 4.8%, with a market cap approaching $4 billion. The 24-hour trading volume also stands at around $62 million.
Despite the absence of Kaspa on major centralized exchanges like Binance, Crypto ZX remains optimistic about the coin’s future listings. Drawing a parallel to VeChain, which was listed on Coinbase several years after its initial cycle, the analyst suggests that Kaspa could follow a similar path once more developments are in place.
Technical Analysis: Fibonacci Retracements and Support Levels
Delving into the technical aspects of Kaspa’s price action, Crypto ZX highlights the coin’s position in relation to Fibonacci retracement levels. KAS is currently sitting in the 0.50 Fibonacci retracement zone, a level known for providing support. The cryptocurrency recently tested the 38.2 Fibonacci level but faced rejection, indicating the presence of resistance at that price point.
However, Crypto ZX emphasizes the impressive bounce Kaspa has experienced since May 1st, with the coin still up 57.7% despite the 14.6% pullback from its all-time high. The analyst points out that the overall price pattern discussed on the channel over the past month is playing out as expected, which is an exciting development for Kaspa enthusiasts.
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Show more +Hourly Timeframe Analysis and Resistance Levels
Shifting focus to the hourly timeframe, Crypto ZX notes that Kaspa’s previous resistance level, which it broke through during its upward movement towards the 38.2 Fibonacci level, is now acting as a support level. This is a promising sign for the coin’s future price action.
The analyst also identifies the 17 cents price point as a key resistance level, dating back to previous price action. Kaspa’s ability to retest the 38.2 Fibonacci level on Sunday has provided a lot of momentum and speaks volumes about the coin’s potential.
Read more: Bitcoin Analysts Unveil Key Reasons BTC Price Has Failed to Break Above $72k
Bullish Outlook and Risk Management
Crypto ZX expresses confidence in Kaspa’s ability to push up to the 17.1 cents level and potentially reclaim the 23.6 Fibonacci zone, which represents the all-time high territory. The analyst notes that Kaspa has demonstrated the ability to reclaim this zone quickly, even after sharp dips, setting it apart from many other projects.
However, the analyst also acknowledges the risk factor associated with Kaspa, as the coin can be more easily manipulated compared to some other projects. Crypto ZX advises investors to set stop losses in place as a precautionary measure, especially if Bitcoin were to experience a fake-out.
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