Kaspa extends downward price move as seller pressure dominates trend

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Kaspa drops 7.73% today to $0.03

Highlights

Kaspero Labs introduced kaspa-redteam, an open-source tool to identify security vulnerabilities in SilverScript smart contracts for Kaspa.
The tool targets contract assessment on Testnet 12 and strengthens technical infrastructure in Kaspa's layer-1 UTXO ecosystem.
Kaspa trades below major moving averages with bearish momentum signals, a projected range of $0.0287 to $0.0334, and strong downside risk over the next several days.

Technical upgrades outpaced by persistent selling in the market

Kaspero Labs introduced kaspa-redteam, an open-source tool to aid developers in detecting security vulnerabilities in SilverScript contracts for Kaspa, according to Cryptonews. This tool is aimed at improving contract assessment for layer-1 UTXOs and currently applies only to the experimental SilverScript environment on Testnet 12. While this development enhances the ecosystem's technical infrastructure, immediate price action has been dominated by broader selling pressure.

Bearish momentum and oscillator divergence as major levels capped

Technically, KAS sits below the MA-20 at $0.0319, MA-50 at $0.0326, and MA-200 at $0.0327, with the Ichimoku Kijun also positioned at $0.0319 as immediate resistance. Momentum indicators remain negative: MACD and ADX both flash sell signals, and the RSI stands at 33.7, reinforcing bearish momentum. CCI shows oversold conditions, while Stoch RSI suggests short-term overbought pressure, highlighting oscillator divergence. Bull/Bear Power points to further seller dominance, and the Awesome Oscillator stays neutral without confirming a trend.

Downside favored as resistance holds and support at risk

Over the next 2 to 3 trading days, KAS is expected to fluctuate within a range of $0.0287 to $0.0334, aligning with typical volatility bands. Given strong downside technical signals, the probability of further declines remains high, while chances of a bullish reversal are low. A sustained move above the $0.0319 resistance would be required to trigger recovery, whereas a fall below $0.0287 support could extend the current downtrend.

Viktoras Karapetjanc, Traders Union expert, sees Kaspa facing continued short-term headwinds as technicals remain weak and bearish sentiment prevails. He highlights that despite the Kaspero Labs security tool launch, current market dynamics are shaped by selling pressure rather than ecosystem improvements. The analyst remains constructive on long-term development activity but notes that bullish recovery depends on reclaiming $0.0319 resistance. "A technical bounce is possible if confidence improves, but for now sellers remain in control until key levels are retaken."

Earlier, analysts noted that Kaspa was under persistent selling pressure despite ongoing upgrades and development efforts. The latest analysis reinforces this bearish outlook, with strong technical momentum pointing to continued downside risk unless KAS can reclaim resistance above $0.0319 in the coming sessions.

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.