Kaspa (KAS) Surges 9.47% Breaking $0.10 Barrier

Kaspa (KAS) has recently experienced a significant surge, with its price increasing by over 9% in a single day, surpassing the $0.10 psychological barrier. This bullish momentum has traders focusing on the next key resistance level at $0.12, raising questions about the sustainability of this rally and the potential for a near-term correction.

Analyzing the daily chart of KAS using Heikin Ashi candlesticks, Fibonacci levels, and the Relative Strength Index (RSI) provides insights into the potential upside and downside in the coming days. The chart shows a clean bullish breakout from a multi-week accumulation phase, with Heikin Ashi candles turning fully green and today’s candle exhibiting a large body with no lower wick, indicating strong buying pressure and a decisive trend continuation.

KAS price surged from $0.096 to $0.105, marking a 9.47% daily gain and breaking out of its range-bound behavior. This breakout aligns with the Fibonacci golden pocket zone ($0.089–$0.093), which previously acted as a springboard. The RSI has surged to 79.46, entering overbought territory. While this indicates strong bullish momentum, it also signals caution, as RSI levels above 70 often precede short-term pullbacks or consolidations. However, strong trends can see RSI stretch to 85–90 before correcting, as seen during the April rally when KAS continued higher despite extended RSI above 80.

Using the Fibonacci retracement tool from the previous swing high ($0.117) to the swing low ($0.065), key levels are observed: 0.618 Fib at $0.093 (already broken), 0.786 Fib at $0.105 (tested today), 1.0 Extension at $0.114 (next resistance), and 1.272 Extension at $0.12 (final barrier before a blue-sky breakout). If KAS maintains momentum, $0.114 could be reached within the next few daily candles. A clean breakout above $0.12 would open the door for retesting the April high of $0.117 and potentially extending beyond that to new local highs.

Looking at the harmonic pattern and Fibonacci time zones, it appears KAS may have completed its Wave 2 correction and is entering a Wave 3 impulse leg, often the strongest in an Elliott Wave sequence. Wave 1 moved from $0.065 to $0.089, a $0.024 move. The Wave 3 target, calculated as 1.618 times Wave 1, is $0.127. If KAS is indeed entering a full Wave 3, a move towards $0.125–$0.13 is technically viable.

With strong breakout volume, a clean bullish structure, and favorable Fibonacci and Elliott projections, KAS looks poised to test $0.114 and $0.12 in the near term. If bulls maintain control, an extension to $0.127 is possible. However, traders should watch for any RSI divergence or signs of exhaustion near $0.12. A rejection here could trigger a pullback toward the $0.093–$0.096 support range, which now becomes a key demand zone.

In summary, the immediate resistance is at $0.114, with a short-term target at $0.12 and a bullish extension potential up to $0.127. Key support is found in the $0.093–$0.096 range. The sustainability of this rally will depend on maintaining momentum and volume, as well as monitoring RSI levels for signs of exhaustion or divergence.