Kaspa price shot up to a seven-week high of $0.041 on Thursday before settling at $0.037 at press time. It has now confirmed a breakout from a multi-year falling wedge pattern, which could spur more gains ahead.
Summary
- Kaspa surged to a seven-week high near $0.041 and confirmed a breakout from a multi-year falling wedge, signaling potential for further upside.
- Technical indicators, including Supertrend and Aroon, point to a strengthening bullish trend, with resistance at $0.038 and a potential move toward $0.056.
- Exchange outflows of $1.8 million suggest rising investor accumulation and reduced sell-side liquidity, supporting the bullish outlook.
According to data from crypto.news, Kaspa (KAS) rallied to a seven-week high of $0.037 on March 19. Trading at $0.037 at press time, the token is up nearly 42% from its year-to-date low.
Technicals suggest that the token could still jump at least another 50% before hitting exhaustion.
On the daily chart, Kaspa price has broken out of a multi-year falling wedge pattern formed of two descending and converging trendlines. Typically, when an asset breaks out from the upper side of the pattern, it sees strong upside over the following days.
Kaspa priceIn Kaspa’s case, the upside scenario is further reinforced by bullish signals from technical indicators. The Supertrend, a tool used to measure market trend direction and volatility, flashed a green signal as the price moved above the key overhead trendline.
Additionally, the Aroon indicator shows the Aroon Up at 92.86% while the Aroon Down was at 14.29%, suggesting that a powerful new uptrend is currently in control.
For now, the immediate resistance for Kaspa lies at $0.038, the 23.6% Fibonacci retracement level drawn from the May 12 high of $0.13 last year to the Oct. 10 low of $0.0090.
A decisive breakout from here with strong volume can push its price to $0.056, which aligns with the next Fibonacci retracement level and lies nearly 51% above the current price.
The bullish outlook for Kaspa could gain further support from rising exchange outflows, as investors have begun moving their holdings off exchanges. Per data from CoinGlass, nearly $1.8 million worth of Kaspa has left exchanges recently.
Such a sudden spike in outflows means that investors are likely withdrawing Kaspa to self-custody wallets, potentially due to expectations of significant future price appreciation. This often leads other market participants to follow suit and further reduces the available sell-side liquidity.
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
Source: https://crypto.news/kaspa-price-eyes-over-50-rebound-after-confirming-falling-wedge-pattern/
