Will Kaspa Regain Bullish Momentum?

From a theoretical perspective, entering a position in the direction of the prevailing trend is traditionally considered less risky. This is a well-known principle among traders, but accurately identifying the true trend is often easier said than done.

In today’s analysis, we aim to highlight a potential new buying opportunity for Kaspa—and, more importantly, guide you through how to correctly recognize a dominant trend. Understanding this concept not only helps reduce risk but also increases the probability of success when entering a trade.

Kaspa technical analysis

KASUSD - 1 Day Time Frame

The first and most important step in any technical analysis, especially on the daily timeframe, is to identify the prevailing longer-term trend. In our view, an effective way to do this is by analyzing market structure, rather than relying on trend indicators or trendlines, which can introduce bias and generate misleading entry signals.

Kaspa’s price had been moving within a bearish structure since the start of the year, consistently forming lower highs and lower lows. The trend reversal became clearer when the price closed above the most recent valid lower high on the daily timeframe—a signal that marked the possible shift in momentum.

For clarity, we’ve highlighted this breakout with a top blue horizontal line on the attached chart. From that point, the price has been forming a more bullish structure, creating stronger technical foundation to begin considering a long position. Importantly, a valid trading setup must follow—one that is clearly distinct from the trend analysis itself.

Kaspa price target

In recent days, Kaspa has pulled further back within its internal (still bullish) structure, reaching a key blue support zone. This level opens the door for a potential buy entry, provided the zone holds and the price does not close below it on the daily timeframe. If support remains intact, this level presents an attractive point for a trend-aligned position.

As always, proper risk management is essential. A protective Stop Loss (SL) can be placed just below the internal higher low, as shown on the chart.

Meanwhile, the Take Profit target can be aligned with Buy-Side Liquidity (BSL) zones—areas where previous bearish price delivery emerged, which now serve as attractive destinations for upward movement.