Kaspa Price Surges 6.5% Amid Short Squeeze Potential

Kaspa (KAS) is currently experiencing a notable market recovery, with its price up around 6.5% and trading just below the crucial resistance level of $0.090. This price zone has garnered significant attention due to a large short squeeze setup that traders have been closely monitoring. According to a recent article, a breakout above $0.090 could liquidate nearly 12 million short positions, potentially triggering a rapid upward movement.

Over the past 24 hours, Kaspa has seen a slight decline of about 0.49%, but it remains higher than it was a day ago. The 4-hour chart shows an RSI of 51.69, indicating neutral momentum with no extreme fear or greed among traders. Additionally, trading volume has increased by 30%, suggesting heightened participation as the price tests this critical level.

Kaspa’s price action over the past few weeks has shifted from a steep downtrend to a sideways range. After falling from its May high near $0.135, KAS found support near $0.075 and has since slowly climbed back up, now stuck between $0.085 and $0.090. This zone has become a pressure point, with buyers and sellers battling for control. $0.090 now serves as the next significant test, acting as both a resistance level and a key trigger for a potential short squeeze. If bulls manage to push above it, the move could be swift and sharp. Conversely, if the price drops below $0.085, sellers may regain confidence and pull the price back down to the $0.080 or $0.075 zone.

Technical indicators on the daily timeframe show that Kaspa is still under pressure. The MACD remains slightly negative, indicating that bearish momentum has not fully dissipated. The ADX is above 40, suggesting a strong trend, likely bearish. The CCI and Ultimate Oscillator are neutral, showing a balance between buyers and sellers. The ROC indicates that Kaspa has lost speed recently, while the Bull/Bear Power turning barely positive suggests that bulls are attempting to regain control.

For June 10, several scenarios are possible for Kaspa’s price. If it breaks through $0.090 with solid volume, the price could jump quickly, confirming a short squeeze and opening the door for a move toward $0.095 or even $0.100. If Kaspa stays below $0.090 but holds above $0.085, the price will likely move sideways for the rest of the day, indicating a market waiting for a clear breakout or breakdown. If Kaspa fails to hold $0.085, sellers could take control again, potentially pushing the price toward $0.080 or $0.075, signaling a fading short-term recovery and a returning bearish trend. The outcome hinges on the battle at $0.090, with bulls needing to win to turn the day explosive, or else expect more sideways action or a deeper pullback.