Technical analysis by elfabiiani about Symbol KAS: Buy recommendation (5/31/2025)

Technical Analysis – KASPA/USDT (1D)Trend Structure & Price ActionKASPA experienced a strong bullish rally (highlighted in orange) starting in mid-April, followed by a descending channel (bullish flag) correction (highlighted in green).Currently, the price is approaching major support zones, indicating a potential reversal opportunity.Support & Buy Zones (Marked)Buy Spot 1: ~$0.062–$0.067 → Key historical support, potential bottom range.Buy Spot 2: ~$0.070–$0.075 → Moderate support, former resistance turned support.Buy Spot 3: ~$0.078–$0.081 → Current local demand zone and trendline interaction.These zones represent incremental buying opportunities during correction.Indicator Analysis Market Cipher / Divergence IndicatorsMultiple bullish divergence signals are forming (green dots), suggesting buyer interest is growing.Momentum is in deep negative territory and may be bottoming.RSI (14)RSI is at 32.95, which is approaching oversold territory (below 30), signaling a potential reversal.Money Flow Index (MFI)MFI is at 19, which is also considered oversold, showing capital is leaving but likely nearing exhaustion. Stochastic RSIStochastic RSI is below 10 (6.22) and starting to cross, indicating a strong potential bullish reversal in the short term.Trading Plan – KASPA/USDT (Spot Strategy)Entry Strategy (DCA)Buy SpotEntry RangeAllocationReasonSpot 1$0.062 – $0.06750%Major long-term support, deep oversold zoneSpot 2$0.070 – $0.07530%Mid-range support, confirmation zoneSpot 3$0.078 – $0.08120%Early entry for aggressive tradersRisk ManagementStop Loss (optional): Below $0.060 (break of long-term structure)Average Entry (if all 3 zones are filled): ~$0.071 (estimated)Capital Allocation: Use max 3–5% of total capital per setup for risk control. Profit TargetsTarget LevelPriceRationaleTP1$0.092 – $0.095Top of descending channelTP2$0.105Previous swing high (April peak)TP3$0.120Breakout and continuation targetKASPA is currently in a healthy correction within a bullish continuation pattern (falling channel). The confluence of oversold indicators (RSI, MFI, Stoch RSI), support zones, and bullish divergence suggests a favorable buying opportunity for swing or position traders. If the price respects these zones, a bounce toward the prior high or breakout levels is likely.