During the last month, $KAS has risen by around 22%. It is also positive in the 7-day and 24-hour charts. At the same time, it has declined by approximately 41% over three months. That combination matters. It indicates short-term strength within a broader downtrend, which is often where reversal setups begin to form.
The first signal comes from momentum. Between October 10 and December 18, the price of Kaspa marked a lower low, while the RSI, or Relative Strength Index, formed a higher low. The RSI measures momentum. When the price weakens but the RSI improves, selling pressure decreases.
The same RSI divergence was observed between October 10 and November 21. Following this signal, KAS rose by approximately 74% in a brief period. This time, the price has already moved by around 18%, demonstrating that the setup is active, not theoretical.
The structure adds another layer. Kaspa is forming an inverted head and shoulders pattern with an ascending neckline. This pattern suggests that buyers are stepping in at each dip. The first level to watch is $0.062, a level where the price of KAS previously stalled. A clean move above this level could push the price towards the neckline near $0.079, where momentum would be tested again.
The risk remains clear. A drop below $0.040 would weaken the setup. A drop below $0.036 would completely invalidate the bullish scenario.
