Kaspa’s daily Relative Strength Index (RSI) has recently dropped to 25—a level that signals the asset is deeply oversold. Notably, this was the same level observed in May 2023, right before the price surged by 1,200% over the next six months. If history is any indication, a similar rebound could potentially drive Kaspa’s price up to around $11.50 per token.
This oversold condition might represent an ideal accumulation zone for investors, providing a buying opportunity before a possible reversal. Supporting this view is the formation of a weekly bullish divergence. Despite the price making a new lower low, the RSI has remained steady, suggesting that the downward momentum might be slowing down.
Weekly RSI divergence is particularly significant because it reflects longer-term shifts in market sentiment, making it a more reliable signal compared to short-term indicators. While no indicator guarantees a reversal, these technical signs suggest that Kaspa could be positioning itself for a notable change in direction.
As always, it’s important to remember that technical analysis is just one tool among many, market conditions can evolve quickly and it is import to do a comprehensive research before any investment decisions. Nonetheless, the current signals are sparking discussion about whether Kaspa is on the verge of its next major move.
