Kaspa (KAS) has seen a significant jump of nearly 28% in the past day, attempting to break out of the downtrend it has been experiencing since last December. The altcoin reached an intraday high of $0.074, pushing its market cap close to $2 billion. Daily trading volume also saw a substantial increase, almost doubling to $188 million.
Despite the recent gains, KAS is still 68% below its all-time high, which was achieved in early November 2023. The catalyst for the current surge in price is the addition of KAS to the “Made in America” category by crypto data aggregator CoinMarketCap. This listing has captured the attention of investors, with speculation about potential tax benefits for U.S.-based cryptocurrency projects under the current administration.
Another contributing factor to Kaspa’s price increase is the positive results of its Crescendo upgrade, currently in the testnet phase. The transition to 10 BPS on Testnet 10 signifies progress towards scalability goals. Additionally, the Kaspa community has praised the altcoin for its low transaction fees, enabling cost-effective and fast transfers between wallets.
Social sentiment surrounding KAS has turned bullish, according to Santiment data, aligning with the recent price rally. However, technical indicators suggest a bearish outlook for KAS, with the Relative Strength Index below 50 and the Moving Average Convergence/Divergence (MACD) in negative territory. The Supertrend indicator has also turned red, indicating pressure from bears in the market.
If bearish conditions persist, KAS’s price could potentially retreat to the support range of $0.048 to $0.057. On the other hand, a strong break above the descending resistance trendline established since December 9 could signal a bullish reversal, invalidating the current bearish setup.
As of the latest update, KAS is trading at $0.067 per coin. It is important to note that this article does not provide investment advice and is intended for educational purposes only.