It’s been a rough week across crypto. One of the biggest single-day sell-offs of the year witnessed over $19 billion in value eroded following President Trump’s declaration to impose tariffs of 100% on imports of Chinese technology. That frightened world markets, and risk assets were such that investors ran from them, and cryptocurrency was no exception.
Bitcoin and Ethereum fell, and the rest of the market with them. Kaspa (KAS) was also caught up in the chaos, experiencing one of its largest losses in months.
The price of KAS fell briefly under $0.01 before recovering to the $0.056–$0.058 level. It was a nasty fall, but the quick recovery shows there’s still a high demand for the project.
What the KAS Chart Is Showing
The 4-hour chart tells the full story. Kaspa price had been trading quietly between $0.078 and $0.080 for weeks, building a steady base, until the entire market unraveled.
Then came a sudden vertical drop, with one massive red candle pushing the price down to $0.0097 in a matter of minutes.
That kind of move usually signals a liquidation cascade. Traders using high leverage got wiped out, stop losses were triggered, and liquidity vanished. But the more interesting thing is how quickly the price recovered.
In hours, KAS price has recovered over $0.05, which means big players or market makers stepped in to firm things up.
Price today is just below $0.057. The old support zone around $0.075 has turned into resistance, and that’s the level bulls need to reclaim before any real recovery can begin.
Market Indicators
Looking at the indicators, momentum is still weak but showing early signs of stabilization. The RSI is hovering between 33 and 37, which means KAS price is sitting in oversold territory. That could lead to a small relief bounce, though the trend hasn’t fully turned yet.
Open interest has dropped significantly, from around $708 million to $379 million, meaning a lot of leveraged positions were flushed out during the crash.
Long positions have been cut back heavily, while short positions are still elevated, suggesting traders are staying cautious and leaning bearish for now.
The MACD is also confirming that trend. It’s still printing red bars, and both signal lines are pointing down, showing that selling pressure hasn’t completely faded. All of this paints a picture of a market that’s still nursing its wounds from the sell‑off.
KAS Price Short‑Term Outlook for The Week
In the short term, $0.055 is the line in the sand. If Kaspa can hold above that zone, there’s room for a small rebound toward $0.065 or $0.070, more of a technical recovery than a real trend reversal.
But if Kaspa price slips back under $0.055, the next major support sits closer to $0.045, and breaking below that could lead to another sharp decline.
For bulls, the real test will be $0.075. Taking that level back would signal strength and could be the beginning of a proper recovery but that could take some time, especially with sentiment all around the market still weak after tariff shock.
Final Thoughts
Kaspa is still one of the stronger Layer‑1 projects out there, but even solid fundamentals can’t escape macro events like this one. The past few days have been a reminder that crypto remains highly sensitive to global headlines and leveraged markets.
This week, all eyes are on whether the KAS price can defend the $0.055–$0.057 area. Hold that, and a steady recovery could follow. Lose it, and we can count on another correction before things get calm. Meanwhile, patience and controlled risk‑taking are the keys to success.