The price of the Kaspa (KAS) token is beginning to recover after a significant decrease in July, and the technical charts suggest a possible sharp move in the near future.
Current Situation for KAS
As of the writing of this article, KAS is trading around $0.0878, up just over 3% in the past day. Traders are closely watching key levels and liquidity zones that could spark a breakout if momentum picks up.
The token had a strong run from early June, climbing from about $0.06 to over $0.14 by mid-July. After that peak, it slipped into a correction, breaking below its rising trendline and finding support near $0.08.
It has bounced slightly since then, but is still sitting below the 30-day EMA at $0.091, indicating that short-term momentum is still fragile.
The main support zone is holding between $0.082 and $0.080. If KAS price falls through this area, it could slide toward $0.075–$0.070.
Kaspa Liquidation Data
Data from the Kaspa liquidation heatmap shows a heavy concentration of short positions between $0.086 and $0.091, with a critical cluster near $0.095.
Kaspa Daily reported that over $22 million in shorts are at risk of liquidation if KAS price reaches $0.095. This setup creates a potential short squeeze scenario where forced buy orders could accelerate an upward move.
> "Over $22 million worth of Kaspa shorts are at risk of liquidation if the price climbs to $0.095, potentially fueling additional upside momentum if that level is reached." — Kaspa Daily.
Exchange Flows and Market Sentiment
On-chain data shows that about 19 million KAS left known exchange wallets in the last 24 hours.
When coins move off exchanges, it usually means holders are moving them to self-custody or planning to hold for longer. This often takes some selling pressure off the market in the short term.
> "The biggest outflows came from known exchange wallets, totaling around 19 million KAS over the past 24 hours, signaling ongoing supply reduction on exchanges." — Kaspa Daily.
With the price bouncing from oversold levels and plenty of liquidity sitting above current prices, traders are leaning cautiously bullish right now.
According to current data, the price of KAS shows signs of recovery. Given the potential for the liquidation of short positions and reduced market pressure, traders are hopeful for a breakout above the $0.095 level, which could pave the way for further growth.
