Kaspa faces nearly 8% slide as technical indicators enter oversold zone: weekly analysis

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Kaspa slips 7.97% over the week

Highlights

Kaspa trades at $0.0327, down 7.97% over the past week and testing its 200-day moving average.
Technical structure remains weak with price below short-term averages, but oversold oscillators indicate upside rebound potential.
Kaspa is expected to consolidate between $0.0298 and $0.0355 over the next 7 days, with 73% probability of further downside.

Network milestones and protocol upgrades drive community sentiment shifts

Kaspa is nearing 2.5 billion cumulative transactions, and the network now has close to 600,000 active wallets, according to CryptoNews.net. September brought the Toccata upgrade with expanded developer tools and KRC-20 token support, while attention has shifted to the proposed DAGKnight consensus upgrade. Cryptoast.fr reported that the KaspaDollar project is seeking community funding to introduce the first decentralized stablecoin on Kaspa.

Oversold momentum builds as mixed signals shape short-term technical outlook

The daily chart structure is characterized by a sharp move lower without a sustained trend, with volatility at 16.77%. Momentum signals are mixed: Stochastic RSI and CCI are both oversold, suggesting selling exhaustion and upside rebound potential, while RSI sits in a neutral zone at 37.1042. The nearest support is marked at $0.0322, with resistance at $0.0358 and an additional cap at the Ichimoku Kijun of $0.0379. On the weekly chart the longer-term picture stays negative.

Near-term consolidation likely as key averages and support are retested

For the next 7 days, Kaspa is expected to range between $0.0298 and $0.0355, with a 27% probability of an increase and a 73% probability of a decrease. The base case is a consolidation within this zone as the 200-day average and support levels are tested. A bullish scenario would require a move above resistance at $0.0358, while a close below support at $0.0322 could signal further downside toward the lower end of the forecast range.

Sholanke Dele, market strategist, notes that Kaspa slid sharply to $0.033 this week, but selling pressure appears to be slowing as the token approaches oversold conditions. He observes that despite the negative tone on the longer-term chart, daily technicals show both the Stochastic RSI and CCI now in oversold territory, raising the chances of a short-lived rebound. Dele also points to Kaspa’s latest network developments — including the Toccata upgrade, rising wallet activity, and the KaspaDollar funding proposal — as positive signals for engagement, though he remains unimpressed by their immediate impact on price. His base case for the coming week is a range-bound move between $0.0298 and $0.0355, with the odds favoring further downside unless $0.0358 is reclaimed. "Until Kaspa can sustain a break above resistance, I see this consolidation as vulnerable to another leg lower."

Earlier, analysts noted that Kaspa was under sustained selling pressure despite ongoing network upgrades and development efforts. The current article adds that while downside risks remain, oversold signals and recent volatility suggest traders should closely monitor support at $0.0322 for any sign of a potential technical rebound.

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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