Kaspa price eyes breakout as it forms bullish reversal setup ahead of HTX listing

Listing announcements on such major crypto exchanges tend to increase visibility and credibility for the associated cryptocurrency, which often triggers rallies at least in the short term.

This comes as data from Nansen shows that the balance of KAS tokens on exchanges has dropped nearly 3% over the past week to 3.28 million. Usually, this means investors are moving their holdings to self-custody wallets, and that is a potentially bullish sign as it could reduce selling pressure in the short term.

On the weekly chart, Kaspa price has formed a falling wedge pattern, which typically acts as a popular bullish reversal pattern, especially when the price breaks out from the upper trendline of the pattern. At press time, KAS was close to breaking out from the upper trendline. 

Technical indicators such as the MACD and the Aroon also displayed bullish signs. Notably, the MACD line was close to crossing over the signal line, which indicates bulls are starting to gain dominance over the bears.

At the same time, the Aroon indicator suggests a trend reversal may be on the horizon. The Aroon Down showed a reading of 21.43%, which means that while bears are still somewhat in control, their strength is diminishing, and the current downtrend is losing steam.

Meanwhile, the Aroon up was at 0%. The low readings for both indicators often signal that the market is entering a period of consolidation, or that the current trend is pausing. It may precede a potential trend reversal if the Aroon Up line were to cross above the Aroon Down once KAS gets listed on HTX.

For now, $0.056 stands as the immediate resistance level for Kaspa price, a breakout above which could push it to $0.085, which aligns with the 38.2% Fibonacci retracement level. At press time, the target lies around 80% above the current price.