The cryptocurrency market is undergoing corrections after a strong rally. Ethereum leads the decline, which is negatively affecting other altcoins, including Kaspa.
Overview of Current Cryptocurrency Market Situation
The cryptocurrency market is experiencing notable retracements following its recent rally. Ethereum peaked at $2,879 on June 11, subsequently decreasing by more than 11% to around $2,550. This decline has also affected major altcoins, including Kaspa.
Technical Analysis of Kaspa and the "Power of 3" Model
Kaspa is currently down over 16% in the past week and nearly 39% over the last 30 days. However, a potential bullish setup is emerging on lower timeframes. On the 4-hour chart, KAS is forming a "Power of 3" pattern, consisting of three phases: Accumulation, Manipulation, and Expansion.
During the Accumulation phase from May 30 to June 13, KAS traded in a tight range between $0.92 and $0.79, demonstrating low volatility and indecisive price action.
Prospects and Key Levels for Kaspa
After the sharp drop on June 13, when KAS reached a local low of $0.7141, a shakeout structure may be observed. The next key level to watch is $0.79. If KAS can reclaim this level, it could indicate the start of the Expansion phase and upward price movement. However, it remains crucial to defend the $0.7141 support level. A breakdown below this zone may lead to further downside.
The current correction in the cryptocurrency market is significant, and KAS's future performance will depend on its ability to maintain key levels. Monitoring the global situation will also be important for future trading decisions.
