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Altcoin Opportunities

KAS is set to rinse and repeat a rally

Updated: Jul 25, 2024
Published: May 8, 2024
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Let's break down the technical analysis.

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Hypothesis

Kaspa is printing a really powerful wedge pattern, which saw the asset move significantly higher the last time it printed this. We also have clear room for upside across the board on the markets, and with this positive price action across the board and resilience on the key level of demand in and around 0.10, it's a strong case for further upside with minimal risk of downside on this play.

Technical analysis

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Even during the recent correction, the stabs on the weekly timeframe to the downside were met with little success. Multiple-week bearish wicks stabbing lower before price eventually settled on the key area of demand.

This is also a "scene of the crime" level, as we've seen a similar formation print here previously with a very explosive move to the upside from here.

This could represent a nice accumulation for a move to the upside.

Play for traders

Scenario 1: Get in at market price off the back of some strong intra-day closures.

Scenario 2: Allow a retracement back into the LOI of $0.100 and place a limit order there.

Risk and reward

With this level being almost the last point of call and the technical alignment and conviction having relatively strict parameters, we have a relatively tight stop loss of around 20% below the LOI, which is $0.0836.

Take profit:

TP 1: $0.1850 and beyond.

Play for investors

You should be looking to take the same approach as the trade and understand how significant this level has been and strong in support during the last few weeks of downside across the markers.

Cryptonary's take

KAS is an asset that showed a lot of bullish promise at the start of the cycle and, from a TA perspective, has shown a decent amount of strength and resilience in touch times.

As the market looks to want to push higher, we can take the opportunity with conviction around our hypothesis to back it.

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