Kaspa drops 7.12% as DAGKnight upgrade delays extend protocol improvement timeline

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Kaspa slides 7.12% as selling persists

Highlights

Kaspa confirmed its Toccata hard fork, enabling smart contracts and KRC-20 tokens for expanded Layer 1 programmability.
Delay in the DAGKnight upgrade introduces project timeline uncertainty, raising concerns about sentiment and developer momentum.
Technical outlook is bearish with price trading below key averages and momentum indicators signaling high probability of continued downside within $0.0292–$0.0334.

Protocol upgrade optimism offset by delay risks amid sentiment split

Kaspa’s upcoming Toccata hard fork was confirmed, introducing programmable Layer 1 capability including support for KRC-20 tokens and advanced smart contracts, as reported by CaptainAltcoin. This upgrade represents a significant technical enhancement that builds out infrastructure for future developer and decentralized application activity. However, reports of delays affecting the DAGKnight upgrade have introduced uncertainty, potentially dampening sentiment as the protocol’s full improvement timeline is extended.

Bearish momentum prevails as major averages and signals weigh

KAS/USD is currently trading below the MA-20 ($0.0319), MA-50 ($0.0317), and MA-200 ($0.0376) levels. The Ichimoku Kijun at $0.0319 acts as immediate resistance for any attempted rebounds. Momentum signals highlight bearishness, with both MACD and ADX indicating a sell bias. RSI stands at 29.31, while both CCI and Stoch RSI show oversold conditions, signaling potential for short-term exhaustion. BBP reflects seller dominance for intraday trading, and the Awesome Oscillator also signals to sell.

Downside risk elevated as limited rebound prospects persist

Over the next 2–3 sessions, the typical volatility band is expected between $0.0292 and $0.0334. The probability of a significant move higher is very low, while the likelihood of further declines is elevated. If price sustains above $0.0319, a recovery rally may emerge; however, a decisive break below $0.0292 would open the door to additional downside.

Anton Kharitonov, analyst at Traders Union, sees Kaspa under pronounced downward pressure. He notes the confirmed Toccata hard fork is a structural positive, but ongoing delays and weak technicals keep risk elevated. Resistance at $0.0319 remains key, and sentiment is soured by stalled protocol progress. "As long as KAS trades below all major moving averages and $0.0319, I remain cautious and see little reason to buy."

Earlier, analysts noted that Kaspa was exhibiting strong near-term momentum with growing speculative interest and a bullish technical posture. The current shift to sustained bearish pressure and oversold conditions marks a reversal in sentiment, making the next move above or below the $0.0319 resistance and $0.0292 support levels critical for determining the prevailing trend.

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

The information is based on forecasts and does not constitute investment advice or a guarantee of future results. Market conditions may change. See our Disclaimer and Editorial Integrity for details.