Kaspa (KAS) Price Flashes Early Reversal Signals: Can It Regain 2023 Highs?

Kaspa price is gaining momentum after showing early signs that a trend reversal could be in the works. Two different technical setups suggest that the momentum might finally be shifting.

Kaspa price is showing early signs that a trend reversal could be in the works as it prepares to test the next major resistance. According to a technical analysis from DeFi Decoder, Kaspa has formed a strong bottom around the $0.05 to $0.055 range on the weekly timeframe. This area, which was previously a resistance during the 2023 breakout, has been respected and tested multiple times, showcasing its strength as support.

Kaspa price is now showing signs of a potential macro shift with strong volume kicking in

This view is further supported by another technical analysis from Crypto Haque, who points out that KAS price has just broken out of a falling wedge pattern on lower timeframes with "huge volume." The falling wedge is a bullish reversal signal that appeared after a chronic downtrend, which saw Kaspa forming lower highs and lower lows since it peaked at about $0.25.

However, the selling pressure has eased in recent times, allowing Kaspa to defend the support zone between $0.05 and $0.07, where buyers have been stepping in. This has enabled Kaspa to break above the wedge’s upper resistance line at $0.095 and move towards the $0.10 mark.

The breakout is accompanied by an increase in trading volume, which signals the velocity of the move. As Kaspa price continues to rise, it faces immediate resistance around $0.10 to $0.105. Breaking through this zone could open the door for further gains towards the next resistance levels at $0.13, $0.15, and the range between $0.18 and $0.20, which marks the prior highs of Kaspa’s major rally in 2023.

Both analysts highlighted the potential influence of Bitcoin’s price action on Kaspa’s next moves. According to DeFi Decoder, sustained strength in Bitcoin could help Kaspa price break through the $0.10 resistance and continue advancing.

Crypto Haque’s commentary also expressed confidence in Kaspa’s utility and prospects, stating that the project has "amazing potential." Traders will be closely monitoring support and resistance zones for further validation, while technical patterns suggest that KAS price may be entering an early reversal phase after a prolonged correction period.

With strong support levels intact and increasing buying interest, the focus now shifts to the $0.10 resistance zone. Continued volume growth and broader market strength will likely play a decisive role in Kaspa’s short-term and mid-term trajectory.