Kaspa drops as ADX confirms persistent bearish trend: weekly review

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Kaspa falls 6.81% this week

Highlights

Kaspa remains under sustained bearish momentum, trading below key moving averages with sellers dominating both medium- and long-term trends.
Momentum indicators, including MACD and ADX, signal continued downside pressure without signs of reversal, while volatility has increased as the price approaches weekly lows.
Over the next week, Kaspa is expected to trade between $0.0334 and $0.0410, with a significantly higher probability of further declines than a sustained recovery.

Bearish technical signals persist amid elevated volatility this week

Weekly technical indicators for KAS remain bearish, with momentum signals pointing to continued selling pressure. The MACD and Stochastic RSI both signal a strong sell, while the ADX confirms a bearish trend; the RSI at 42.25 indicates a negative bias but not strongly oversold conditions. Bull/Bear Power gives a mild buy signal, yet the overall picture remains negative, and volatility stayed elevated at 22.75%. Immediate resistance is set by the weekly MA-20 at $0.0351 while support is near the recent low at $0.0334, and a rebound would require buyers to regain ground above these levels.

Upside capped as sideways movement likely in coming week

Over the next 7 days, KAS is likely to remain capped between $0.0334 and $0.0410, with a baseline scenario of sideways movement due to the lack of bullish weekly signals. The probability of significant upside is low, estimated at less than 20%, given that none of the four key indicators support a buy. If sentiment improves and dynamic resistance at the MA-20 is broken, KAS could test the upper boundary of the range, but a breakdown below support could see the asset trade toward new weekly lows.

Parshwa Turakhiya, analyst, notes that Kaspa (KAS) saw continued downside pressure over the past week, closing below key moving averages and showing persistent bearish momentum. He observes that no major news or sentiment shifts have materialized to alter the prevailing negative outlook. Momentum signals such as the MACD and Stochastic RSI reinforce the case for selling, while volatility remains elevated and the asset remains pinned at the lower end of its weekly range. Turakhiya believes KAS is likely to trade between $0.0334 and $0.0410 in the coming week, with low odds of upside unless buyers reclaim the MA-20. "Until KAS breaks above immediate resistance and sentiment turns, I see no compelling reason to anticipate a recovery this week."

Previously it was reported that Kaspa was facing persistent bearish momentum amid limited prospects for a near-term breakout. The latest technical developments reinforce this cautious outlook, and traders should watch for any decisive move above the weekly MA-20 resistance to signal a potential shift in momentum.

Source of Data: KAS Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

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