Kaspa Shows Signs of Weakening in the Market

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This year, only a few altcoins have outperformed Bitcoin, but one project that has consistently remained in this race is Kaspa, which uses the same Proof-of-Work (PoW) mechanism as Bitcoin. Although the KAS price has increased by over 400% in the last 365 days, recent data shows it may struggle to regain momentum.

What’s Happening on the Kaspa Front?

Kaspa’s current position below the Exponential Moving Average (EMA) supports this point. This indicator highlights price changes and provides insights into a cryptocurrency’s short and long-term trends. This analysis focuses on the short-term EMA average, particularly the EMA 20 (blue) average.

For most of July, KAS traded above the EMA average, indicating an upward trend. This was one of the reasons the value reached $0.18 earlier. At the time of writing, the cryptocurrency is trading below the EMA 20 average, indicating a downward trend. The last time KAS’s price dropped by 20%, it reached $0.13.

In terms of trading volume, the increase in long liquidations in the futures market is damaging fundamental support. Therefore, Kaspa’s next move could be a significant breakdown below its value.

KAS Chart Analysis

A more detailed assessment of the daily KAS/USD chart shows weakness in the upward trend. This is the indicator presented by the Directional Movement Index (DMI). DMI simply measures the strength and direction of a trend.

As of the time of writing, the +DMI (green) is declining, while the -DMI (red) is trying to rise above -17.22. If the negative side surpasses the positive directional strength, the KAS price could fall as it would provide more strength to the downward trend. Additionally, the Average Directional Index (ADX) shows that the overall cryptocurrency trend is weak. Typically, a reading of 25 or above for the ADX (yellow) indicates strong directional movement.

KAS price could consolidate or show a downward trend during this period. If selling pressure increases, the above chart shows that the cryptocurrency could experience a nominal pullback to the 38.2% Fibonacci retracement level of $0.15.

The post first appeared on COINTURK NEWS: Kaspa Shows Signs of Weakening in the Market

The post Kaspa Shows Signs of Weakening in the Market appeared first on COINTURK NEWS.