KAS jumped nearly 28% in the past day as it tried to break out of the downtrend it’s been stuck in since last December.
Kaspa (KAS) rose to an intraday high of $0.074, bringing its market cap close to $2 billion earlier today, with its daily trading volume nearly doubling to $188 million as of press time.
Notably, today’s gains come after a long downtrend, with KAS hitting lower highs and lower lows since hitting $0.188 on Dec. 9 last year. The altcoin still remains 68% below its all-time high, around levels last seen in early November 2023.
The main catalyst fueling today’s gains comes as crypto data aggregator CoinMarketCap added KAS to the “Made in America” category yesterday.
Even though Kaspa is decentralized and has developers from all over the world, CMC’s listing has caught investors’ attention, as some members of the crypto community speculate that the current U.S. administration, led by President Donald Trump, may eliminate capital gains taxes on U.S.-based cryptocurrency projects.
Another key factor behind Kaspa’s recent gains is the promising results of its Crescendo upgrade, currently in the testnet phase.
According to an official March 10 X post, Kaspa’s Testnet 10 has successfully transitioned to 10 BPS, a significant increase from the current 1 BPS on the mainnet. The milestone keeps Kaspa on track to achieve its scalability goals.
Additionally, members of the Kaspa community have highlighted its low transaction fees, which allow for the transfer of millions between wallets at minimal cost. Its fast and cost-effective transactions may be driving more interest in KAS and influencing its recent price movement.
The rally also coincides with a shift in social sentiment around KAS, which has turned positive, according to Santiment data, which means most of the discussions surrounding KAS are bullish.
KAS price analysis
Technical indicators suggest a bearish outlook for KAS. Its Relative Strength Index is below 50, while the Moving Average Convergence/Divergence (MACD) is under 0.
Furthermore, the Supertrend indicator has also turned red and is positioned above the price level, confirming that its market is still facing pressure from bears.
Therefore, if current bearish conditions persist, KAS’s price could likely fall back to the support range of $0.048 to $0.057, which has served as a key support level.
However, a strong break above the descending resistance trendline, which has been in place since Dec. 9, could mark a bullish reversal, invalidating the current bearish setup.
At press time, KAS was selling at $0.067 per coin.
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
