With broader cryptocurrency market sentiment showing signs of recovery — highlighted, for example, by the recent 14% rebound of Bitcoin — several competitive assets are gaining momentum as well. Among them, Kaspa (KAS) stands out, supported by a particularly strong technical setup. What factors are contributing to this constructive outlook?

Kaspa technical analysis

KASUSD - 1 Day Time Frame

On the daily timeframe, the key point is the presence of internal bullish structures, paired with an important contextual detail. Kaspa’s year-to-date performance shows a –42% drawdown from its peak, indicating that despite predominantly external bearish structures, the asset’s internal technical framework has remained resilient.

This suggests that the recent price behavior may represent a natural corrective phase after strong earlier appreciation — effectively creating another opportunity for market participants seeking more favorable valuations. Looking at the structure holistically, the picture becomes clearer.

The internal bearish formations transitioned into bullish ones once a daily candle closed above the previous lower high (shown on the chart at the upper blue level). The entry setups typically used are based on two parameters: a liquidity sweep and a confirmed close above an important resistance or support level within the prevailing structure.

In this case, the broader structure was decisively broken, which generally increases the probability of continuation. However, it also slightly narrows the risk-to-reward profile, which can be mitigated by dividing the position into two parts and deploying the second portion if a corrective pullback occurs.

Kaspa price target

The chart illustrates potential entry configuration. A break above both the blue and red zones indicates that an entry at the current price level could be considered valid within this framework. The lower boundary of the red zone provides an appropriate reference point for a protective Stop Loss.

Potential targets remain aligned with the Buy-Side Liquidity levels shown on the chart, which typically serve as natural areas for price expansion in a continuation scenario.