The cryptocurrency market is attempting a recovery after last week’s sharp volatility, which dragged Ethereum (ETH) to a low of $2622 before rebounding near $2900. This renewed optimism has helped several altcoins regain traction, including Kaspa (KAS), which has posted an impressive 27% surge in the past sessions.
More importantly, its latest price action suggests that a larger move may now be building.
Descending Channel Breakout
On the daily chart, KAS has been trading inside a descending channel — a pattern often seen during extended downtrends that compresses price action before signaling a possible reversal. Throughout this period, sellers consistently pushed price lower, but the downside momentum began slowing as buyers defended the lower support boundary of the channel.
The latest decline brought KAS to around $0.03720, a level that has repeatedly acted as a critical support zone. From there, a sharp rebound took place, with price surging to break above the channel’s upper boundary. Today’s strong upside move also enabled KAS to reclaim the 50-day moving average near $0.05220, which has now flipped into potential support.
This combination of a channel breakout and reclaiming a major moving average suggests early bullish momentum and increased investor confidence.
What’s Next for KAS?
If KAS sustains above both the 50-day MA and the breakout trendline, a retest scenario could set the stage for a stronger bullish continuation. Should buyers defend this area successfully, the next key upside target lies at approximately $0.0676 — aligning with the next major resistance zone and offering a potential gain of more than 28% from current price levels.
However, the breakout is still in an early phase, meaning volatility may increase in the near term. Failure to hold above $0.05220 could delay the bullish structure and push price back into consolidation range.