Technical analysis by elfabiiani about Symbol KAS: Buy recommendation (5/19/2025)

KASPA (KASUSDT) Technical Analysis — 1D Chart by Blaž FabjanDate: May 19, 2025Exchange: KUCOINPair: KAS/USDTChart Pattern: Rising Wedge (Bearish Reversal Signal)A rising wedge is currently forming — characterized by converging trendlines sloping upward.Support and Resistance levels are clearly outlined in the orange zones.This pattern often signals a potential breakdown, but an upward breakout is possible with strong momentum.Key Technical Indicators1. VolumeRecent volume surge on uptrend suggests buying interest, but declining volume into the wedge tip hints at a possible exhaustion.2. VMC Cipher B DivergencesSigns of bearish divergence forming; red dots and momentum wave flattening may signal weakening bullish strength.3. RSI (14)RSI at 53.27: In neutral territory. Slight bearish divergence observed from recent peaks. Watch for a move below 50 as a confirmation of bearish pressure.4. Money Flow Index (MFI)MFI at 83 (overbought zone): Indicates that buying pressure may soon fade, increasing the probability of a correction.5. Stochastic RSI (14, 3, 3)Stochastic RSI near 44–49 and crossing downward: Signaling a potential short-term correction.Key Support & Resistance Zones🟧 Resistance Levels:$0.12 – $0.14 (current wedge resistance zone)$0.16 – $0.18 (next target on bullish breakout)$0.20+ (major resistance if trend continues)🟧 Support Levels:$0.10 (critical support)$0.08 – $0.09 (wedge breakdown target)$0.065 – $0.07 (strong demand zone)Trading Plan for KASPA (KAS/USDT)Bullish Scenario (Breakout Upwards)Entry: Above $0.115 with strong volume confirmationTargets:TP1: $0.14TP2: $0.165TP3: $0.20Stop-Loss: Below $0.10 (to invalidate wedge structure)Bearish Scenario (Breakdown)Entry: Below $0.10 (support break)Targets:TP1: $0.085TP2: $0.072TP3: $0.065Stop-Loss: Above $0.11Neutral/Range StrategyIf KAS trades between $0.10–$0.115 with low volume:Avoid entry.Wait for breakout or breakdown confirmation.Risk ManagementRisk/Reward Ratio: Minimum 2:1Capital Allocation: Max 2–3% of portfolio per tradeUse limit orders to control entry points, especially due to high volatility in crypto markets.The rising wedge pattern is often a precursor to downside in crypto.However, macro bullish news, network upgrades, or volume surges may invalidate the bearish setup.Traders should remain flexible and monitor volume, RSI, and support zones for any signs of reversal.