Three Reasons Kaspa's Price Might Soon End Its Monthly Downtrend

Kaspa’s price appears to be on the verge of breaking free from its ongoing downtrend, spurred by multiple bullish developments on the horizon.

Key Takeaways

Kaspa is currently priced at $0.08, marking a significant decrease from earlier this year.
The Kaspa team may be planning to enter the traditional payments market, generating excitement among investors.
Speculation about a potential listing on Binance is growing, which could boost visibility and demand for Kaspa.
The anticipated launch of Kaspa's Layer-2 solution, Casplex, will bring smart contract capabilities, enhancing its use in DeFi and NFTs.
Technical indicators suggest a potential breakout, but failure to maintain support levels could lead to further declines.

Three reasons why Kaspa price may end its monthly downtrend soon

Currently trading at $0.08, Kaspa has seen a decline of 13.9% over the past month and is down 43% from its peak this year. However, several promising initiatives could signal a positive shift in its trajectory.

Bullish Developments on the Horizon

As per data from crypto.news, the price of Kaspa is currently $0.08. The token has experienced a 13.9% decrease over the last month and is trading 43% lower than its year-to-date high. Its market capitalization, once exceeding $3.9 billion in early January, has fallen to approximately $2.3 billion as of this writing.

Despite this downward trend, several new developments could steer Kaspa back into bullish territory.

1. Potential Entry into Traditional Payments

The Kaspa team recently hinted at a possible foray into the traditional payments market, potentially positioning itself alongside giants like Visa, Mastercard, Google Pay, and Apple Pay. On August 25, they shared an image of a checkout terminal displaying Kaspa’s logo alongside those of these major players, accompanied by the caption “.soon.” Although specifics were scarce, this announcement has led to increased speculation and interest from the community.

2. Speculation Around Binance Listing

Another key element to consider is the growing anticipation of a listing on Binance. Community members are hopeful that the launch will occur soon, especially following the recent introduction of the Binance Pool for KAS mining. As the largest crypto exchange globally, a listing on Binance would enhance Kaspa’s credibility and visibility, likely reigniting investor interest.

3. Launch of Layer-2 Solution: Casplex

Kaspa is also preparing to unveil its own Layer-2 solution, named Casplex, by the end of this month. This upgrade aims to introduce smart contract functionality to the network, which could significantly expand its application potential across areas such as DeFi, NFTs, and decentralized apps (dApps).

Together, these developments could elevate Kaspa’s visibility, attracting new retail investments.

Price Performance Analysis

Kaspa’s most impressive performance in recent times occurred in January, when its price reached $0.15. However, since then, the token has followed a downward trajectory characterized by lower highs and lower lows, bottoming out at $0.058 in April.

After this low, Kaspa experienced two consecutive rebounds, although each subsequent pullback was less pronounced, leading to the formation of a symmetrical triangle pattern on the price chart. While this pattern is typically viewed as a neutral setup, it often resolves in the direction of the prevailing trend.

A breakout above the upper trendline could signal a bullish reversal, while a breakdown below the lower trendline might confirm a continuation of the bearish trend, exposing the token to additional downside risks.

Technical Indicators and Future Prospects

To gauge the likely direction of the breakout, technical indicators provide useful insights. The 50-day simple moving average has recently crossed above the 200-day SMA, creating a golden cross—a popular bullish indicator suggesting that positive momentum is building. Historically, the last time Kaspa formed a golden cross, it saw a 74% rally over the following two months.

Moreover, the Chaikin Money Flow index shows a positive reading, indicating that buying pressure currently surpasses selling pressure, which may hint at early accumulation by market participants.

If Kaspa breaks decisively above $0.092 (the upper boundary of the triangle), it could pave the way for a move towards $0.10, aligning with the 50% Fibonacci retracement from January’s high to April’s low. A confirmed breakout could further herald upward momentum.

Conversely, should KAS fail to maintain the $0.082 support level, this could trigger renewed selling pressure, potentially leading to a deeper correction and revisiting previous lows in the $0.070–$0.060 range.

Disclosure: This article does not constitute investment advice. The information provided here is for educational purposes only.