Technical analysis by elfabiiani about Symbol KAS: Buy recommendation (5/13/2025)

Technical Analysis for KASPA (KAS)Current Price: 0.11268 USDTimeframe: 4-Hour ChartIndicators and Key Observations:Price Action: Kaspa is currently in an ascending triangle pattern, with price action approaching the resistance line, which has been tested multiple times without a clear break. This pattern indicates the possibility of a breakout if the price moves above the resistance line.Support Zone: The support level has been consistent, forming a base near 0.1070 USD. This is a crucial area where buying interest has been observed.Resistance Line: The price is approaching the resistance at around 0.1130 USD. A breakout above this level could signal bullish continuation towards higher targets (potentially 0.1900 USD as indicated by the chart’s blue arrow).Technical Indicators:VWC Cipher B Divergences: The indicator shows bullish signals, suggesting that price might continue to rise, especially if it successfully breaks the resistance line.RSI (Relative Strength Index): The RSI is sitting at around 52.96, indicating that the asset is neither overbought nor oversold. This gives space for potential bullish momentum.MFI (Money Flow Index): The MFI is relatively neutral, indicating that there is no immediate imbalance between buying and selling pressure.Stochastic Oscillator: The oscillator shows a potential bullish crossover, with the signal line moving towards the overbought zone.Trading Plan for KASPA (KAS)Entry Strategy:Long Entry: Consider entering a long position once the price breaks and closes above the resistance line around 0.1130 USD. Look for confirmation through a strong green candle to ensure momentum continuation.Target: The primary target for this trade is 0.18 USD, as indicated by the blue arrow in the chart. A second target can be placed near the psychological level of 0.20 USD, depending on market conditions and price action.Stop-Loss Strategy:Place the stop-loss slightly below the support zone, ideally around 0.1060-0.1070 USD, to protect against a false breakout. The stop-loss should be adjusted as the price moves in your favor to lock in profits.Risk-Reward Ratio:The risk-reward ratio for this trade is favorable, as the potential upside (0.18-0.20 USD) significantly outweighs the downside risk (stop-loss below 0.1070 USD). A risk-reward ratio of 2:1 or higher is ideal for entering the trade.Volume Confirmation:Ensure that the breakout above resistance is accompanied by an increase in volume. Low-volume breakouts can lead to false signals, so confirming the move with higher-than-average volume is crucial for a successful trade.Risk Management:As always, never risk more than 2% of your trading account on any single trade. Use proper position sizing and adjust your stop-loss accordingly to maintain a controlled risk profile.Recent News - Crescendo Upgrade 🚀Today, Kaspa has rolled out its Crescendo upgrade, which boosts the network speed to 10 blocks per second. This is a major leap in scalability, enhancing transaction speed and efficiency. The upgrade is expected to drive greater adoption and increase investor interest, potentially providing additional support for the upward momentum in the KAS market.Kaspa (KAS) is showing signs of bullish momentum, with key technical indicators pointing to a potential breakout above resistance. The recent Crescendo upgrade adds further optimism for the coin's future prospects, making this an exciting trade to consider. Be sure to monitor price action closely and implement strict risk management strategies for optimal results.