Kaspa [KAS] in Peril? The Long-Term Downtrend That Should Keep Investors Up at Night

Is Kaspa [KAS] bleeding out? The once-promising altcoin has been stuck in a brutal downtrend—and traders are starting to panic.

Here’s why the charts look ugly…

Technical breakdown: KAS has sliced through key support levels like a hot knife through butter. No bounce, no mercy—just a slow grind toward oblivion.

Market psychology flip: Remember when everyone called this 'the next Bitcoin killer'? Now even the moonboys are quietly closing their positions.

Liquidity crunch: Thin order books mean every sell-off hits harder. Good luck exiting your bag without moving the market.

Meanwhile, Wall Street’s latest 'blockchain innovation' ETF just added another zero to its expense ratio. Some things never change.

Source: KAS/USDT on TradingView

The 1-week chart highlighted a bullish breakout in December above the local highs from August and September. Just a week after this breakout, KAS broke down, proving that the rally into these highs was a liquidity hunt.

The price tumbled by 72% in four months, hitting $0.052 in March. As Bitcoin [BTC] rallied from $76k to $111k, KAS attempted to recover. However, its bulls were not strong enough. Once again, they were stymied at the local highs. The bearish order block at $0.126 from January rebuffed KAS bulls, sending them to the local lows once again.

The RSI highlighted that momentum was bearish, with a reading under neutral 50. The OBV has been sinking steadily since 2024 too, a huge warning for long-term investors that selling volume was consistent and significant.

What next for KAS traders and investors?

Source: KAS/USDT on TradingView

The 1-day chart underlined some potential for a bullish reversal. A range formation (white) between $0.06 and $0.117, with the mid-point at $0.088, was observed. The price reacted positively from the range lows, and could hit the $0.088-level in the coming days.

And yet, the chance of such a bounce appeared low. At press time, the OBV was on a downtrend for six weeks, with the $0.08 level acting as a local resistance zone. Hence, traders need to be wary of going long on KAS right now. Short sellers might be able to profit from a retest of the $0.088 supply zone.

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion