Three Factors That Could Indicate a Turning Point for Kaspa’s Monthly Price Decline

The price of Kaspa may soon break free from its current downtrend, supported by several positive developments on the horizon.

Per data from crypto.news, Kaspa (KAS) is trading at $0.08, down 13.9% over the last month and 43% below its year-to-date high. The market cap of the token has decreased from over $3.9 billion in early January to around $2.3 billion as of the latest reports.

Despite the downtrend, several new developments could potentially steer it back toward a bullish path.

Initially, the Kaspa team recently hinted at plans to venture into the traditional payments arena similar to major players like Visa, Mastercard, Google Pay, and Apple Pay.

In an Aug 25 X post, an image of a checkout terminal featuring Kaspa’s logo alongside top payment brands was shared, accompanied by the word “.soon.”

Details about the upcoming product remain scarce, but it has ignited speculation within the community, rekindling trader interest.

Additionally, there is talk of a Binance listing coming up. The community is largely anticipating an imminent launch, especially after the introduction of Binance Pool for KAS mining earlier this month.

As the world’s leading crypto exchange, a spot listing would significantly bolster Kaspa’s credibility and visibility, reigniting demand among investors.

Furthermore, Kaspa is preparing to launch its own Layer-2 solution, named Casplex, by the end of this month. This upgrade will introduce smart contract capabilities to the network, paving the way for various applications such as DeFi, NFTs, dApps, and more.

Collectively, these developments could enhance the visibility of the Kaspa token, likely attracting new retail investments.

Kaspa performed best in January this year, reaching a peak of $0.15. Since then, the price has followed a consistent pattern of lower highs and lower lows, reaching its year-to-date low of $0.058 in April.

After this low, Kaspa’s price action showed two successive rebounds and pullbacks, forming a symmetrical triangle pattern on the chart. Although typically considered a neutral consolidation pattern, it often resolves in the direction of the prevailing trend.

A breakout above the upper trendline would indicate a potential bullish reversal, while a breakdown below the lower trendline would likely affirm the continuation of the broader bearish trend, exposing the token to further downside risks.

To gauge the likely direction of this breakout, additional technical indicators provide valuable insights.

The 50-day simple moving average has recently crossed over the 200-day SMA, forming a golden cross—a widely recognized bullish signal suggesting that positive momentum may be building. Historically, the last time Kaspa created a golden cross, the token experienced a 74% rally over the subsequent two months.

Moreover, the Chaikin Money Flow index is currently showing a positive reading, indicating that buying pressure is surpassing selling pressure, which may signal early accumulation by market participants.

Basing on these technical indicators, a decisive breakout above $0.092, the upper boundary of the triangle, could clear the way for a move toward $0.10, a level that closely aligns with the 50% Fibonacci retracement from the January high to the April low. A confirmed breakout from this pattern could lead to further upside beyond that level.

Conversely, if KAS fails to maintain the $0.082 support level, it might trigger renewed selling pressure, leading to a deeper correction, and potentially retesting the previous lows in the $0.070–$0.060 range.