- KAS surged by 6.47% over the past week.
- Kaspa’s trading volume has increased by 14.21%, indicating increased demand and favorability.
Since hitting a new ATH of $0.20 in August, Kaspa [KAS] experienced a considerable drop. However, the last week has witnessed a significant recovery in its prices.
At press time, KAS was trading at $0.172. This marked a 6.47% increase over the past seven days.
Although the altcoin was experiencing a downward trajectory, the weekly gains outweighed recent losses, making monthly charts green with a 6.73% surge.
The price recovery is widely supported by increasing demand, as illustrated by trading volume. As such, KAS’s trading volume increased by 14.21% to $60.8 million.
Over the same period, the market cap increased by 1.56% to $4.2 billion.
What KAS’ charts suggest
According to AMBCrypto’s analysis, Kaspa was experiencing a strong upswing. The uptrend has strengthened the altcoin to break out from the descending trendline on the daily timeframe.
This movement positioned it to make further gains on price charts.
Source: Coinglass
For instance, the Kaspa Directional Movement Index showed a strong uptrend. At press time, the Positive Index at 21.6 was sitting above the negative index at 16.6%.
This showed that KAS was experiencing a strong upward momentum.
Additionally, the Relative Strength Index was at 56.81 after rising for the past three days. This suggests there is higher buying pressure than selling pressure.
Increased buying activity showed higher demand for the altcoin among investors, which was a positive sentiment.
Source: Coinglass
Looking further, over the past 11 days, KAS has seen increased demand for long positions. This is supported by a sustained period of positive OI-Weighted Funding.
A positive OI-Weighted Funding Rate suggested that long position holders were paying shorts. This is another bullish signal as many investors seemed to be betting on prices to increase.
Source: Coinglass
Finally, the altcoin has experienced extremely low total liquidation for more than a month since the 5th of August. At press time, long position liquidations were at $1.24k, while short positions were at $2.34k.
Such behavior suggests the current market condition is highly bullish.
Read Kaspa’s [KAS] Price Prediction 2024–2025
Simply put, KAS is enjoying investors’ favorability, which has pushed the prices up and increased demand. Therefore, these conditions set the altcoin to record more gains.
With that in mind, if the current market conditions are maintained, KAS will break out from the $0.194 resistance level. A breakout from this level will strengthen the altcoin to make new highs.
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