Kaspa finally broke out of its multi-week slump, and pumped more than 25% in one day and reclaiming the $0.05 level for the first time since the November crash wiped out confidence across the entire market.

Analyst Alex shared the setup on X, pointing to a rare combination of technical exhaustion, structural support, and wedge compression that often precedes major reversals.

And when you look at the chart, the setup becomes obvious.

Kaspa spent most of the past year grinding inside a massive falling wedge ; a structure known for weakening sellers over time. This entire drawdown began after a monster 535% rally that started from the exact zone price is now retesting. That’s why this level matters so much. It’s not just “another line” – it’s the origin point of the last exponential leg.

Alex highlighted this perfectly: the current support is the same zone where KAS launched its last parabolic run. After such a long cool-down, the market tends to flush out impatient participants. Price drifts, volume dries up, sentiment hits rock bottom, and the only token holders still selling are doing it out of boredom rather than actual panic.

That’s exactly where Kaspa has been, until today’s breakout finally showed some life.

The falling wedge is tightening. Price is pressing against the upper trendline. And the reaction off support suggests the market is trying to defend this region for a potential trend reversal.

The real question is whether this is the beginning of a structural recovery or just another bounce to be sold into. That’s where the second chart becomes important.

The lower panel indicators confirm something shifted beneath the surface.

The RSI has flipped sharply upward and is now reclaiming momentum after weeks of divergence. Every time RSI printed a new low, price held slightly higher; a classic sign sellers are losing power. Today’s pump pushed RSI well above the midline, breaking its downtrend for the first time in weeks.

MACD is also showing a clean crossover. The histogram flipped green, and the moving averages are curling up in a way that typically precedes multi-day upside moves. Momentum hasn’t looked this constructive since early October.

The most interesting part, however, is the position data.

Net short interest has been increasing steadily for weeks, while net longs have been washed out during the decline. That imbalance is exactly the kind of fuel explosive upside moves feed on. When price finally turns, shorts become forced buyers — and that’s usually when the fastest candles appear.

Combine all of that with a major long-term support level, and the setup becomes statistically favorable for at least a mid-term bounce.

Read also: Why Binance or CoinBase Listing Might Not Matter for Kaspa (KAS) After All

If momentum continues, the first target sits around $0.058-0.060, the upper boundary of the wedge and the first major resistance. A breakout from the wedge would expose $0.07 next, which is the level traders abandoned during the November liquidation cascade.

But if Kaspa fails to hold above $0.045-0.046, the wedge could drag price back into the lower support band around $0.037-0.039.

For now, the chart is leaning bullish. Momentum is turning, shorts are stacked, and Kaspa is reacting exactly where you want to see reactions if a real bottom is forming.

Whether it becomes another 535% run remains to be seen, but today’s move finally gives the bulls something meaningful to work with.

Subscribe to our YouTube channel for daily crypto updates, market insights, and expert analysis.

The post Kaspa Price Signals Its First Bullish Move in Months, Pumps 25% appeared first on CaptainAltcoin.

346 +