Bearish momentum signals — Kaspa slips 7.21% as technical weakness persists

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Kaspa slips 7.21% today

Highlights

Kaspa (KAS) fell 7.21% to $0.0505, trading below all major moving averages with daily, weekly, and long-term momentum indicators confirming strong bearish pressure.
Regulatory clarity improved after the U.S. passed the CLARITY Act and reclassified Kaspa as a digital commodity, opening the potential for institutional adoption in 2025.
Five-day forecast points to a $0.0426–$0.0436 range with less than 20% chance of an upside move, as oversold signals persist and downside risk remains dominant.

Institutional adoption prospects rise amid improved clarity and cautious sentiment

Deposits for Kaspa will open via the Ethereum (ERC20) network, with a call auction scheduled for October 22, 2025, enhancing the token's accessibility and trading potential. Regulatory clarity has improved as the U.S. passed the CLARITY Act, officially reclassifying Kaspa as a digital commodity and paving the way for potential institutional adoption in the coming year. Despite being highlighted among top crypto projects for 2025, the overall outlook is cautious given recent warnings about holding the token long term.

Oversold signals deepen with bearish momentum and volatility divergence

The current price of KAS at $0.0505 is well below the MA-20 at $0.0629, MA-50 at $0.0742, and MA-200 at $0.0854. This alignment shows short-, medium-, and long-term bearish momentum, with the nearest dynamic support and resistance indicated by the Ichimoku Kijun at $0.0458 and the MA-20 at $0.0629, respectively. Momentum signals are mostly bearish, with the MACD on daily and weekly timeframes showing negative values, while the ADX suggests strong trend strength. RSI, Stoch RSI, and CCI are all in or near oversold territory, supporting further downside. Bear Power (BBP) and the Awesome Oscillator both highlight selling dominance. The daily price fell 7.21% after a small gap down on the open, positioning near the low of today’s range with high intraday volatility and persistent pressure from sellers. While ADX strength persists, the mix of oversold oscillators alongside negative momentum underlines a pronounced divergence, with weakness on price action confirmed by momentum but potentially coming close to exhaustion.

Further downside favored unless resistance is reclaimed and support holds

For the next five trading days, the expected price range is between $0.0426 and $0.0436, with an average near $0.0431. Based on momentum and trend indicators, there is a very low probability (less than 20%) of a significant price increase. A further decline is far more likely. In the baseline scenario, the price is likely to consolidate sideways within this lower corridor. In a bullish scenario, KAS would need to reclaim the $0.0629 resistance to reverse the trend. If the bearish scenario prevails and support at $0.0458 fails, further downside towards the weekly projected lows is likely.

Viktoras Karapetjanc, macro and fundamental analyst at Traders Union, sees Kaspa positioned for renewed attention thanks to recent regulatory clarity and impending institutional access, despite a pronounced bearish trend dominating the charts. While macro developments such as U.S. digital commodity classification and ERC20 trading support suggest longer-term potential, Karapetjanc notes that current technicals and sentiment remain strongly negative, pointing to further downside or near-term consolidation. He believes that meaningful recovery will only be achievable once KAS decisively overcomes the $0.0629 level, but sees regulatory momentum as a key tailwind. "A period of weakness is expected, but with the right structural shifts and supportive regulation, Kaspa has room to surprise on the upside later in 2025," he concludes.

Previously it was noted that momentum indicators show mixed signals, with the ADX favoring buyers while the MACD remains negative. The article highlighted that oscillators paint a conflicting picture as downside risks remain elevated and key indicators show a bearish bias.

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.