Kaspa (KAS) recorded a major surge recently, with the altcoin trading above its $0.0357 resistance – An important point of interest that has been highlighted before in a previous analysis.
The cryptocurrency has become more active with higher decentralized-exchange trading volume and derivatives trading positions. Indeed, Kaspa’s DEX volume jumped by 113%, while Open Interest climbed by 19% to reach $1.7 million.
Trading activity strengthens breakout setup
DEX volume for the network surged to around $1.4 million. This implied that should the breakout become successful, the move will gain even more credibility since the number of participants has been getting bigger and bigger.
In terms of derivative sentiments, it can be seen that Kaspa’s Open Interest also gained quite a bit. At the time of writing, Open Interest of KAS had risen by 19% to $1.7 million, suggesting that more positions were being created as the token hit its resistance level.
That’s not all either as the number of whale orders also increased significantly. As per the Kaspa Spot Average Order size data, there has been an increase in whale orders at the press time trading level.
Furthermore, the market seemed to be depicting heating conditions as per the Kaspa Spot Volume Bubble Map as well.
Can KAS finally break $0.0357?
On the daily chart, the next immediate test seemed to be clear. In order to confirm that bulls have succeeded in breaching the flag resistance, KAS has to close above $0.0357.
Should bulls succeed in closing above the level and then keep pushing further in their favor, the resistance will become the support for the price movement towards the next critical level at $0.042.
This will translate to an increase of about 18% from its press time trading price. Otherwise, failure may trap KAS below the resistance, exposing it to a possible fall below the previously seen levels.
As it stands, KAS can depend on an improving technical setup, rising DEX volumes, higher Open Interest and spot market participation.
Final Summary
- KAS has been trading close to the $0.0357 flag resistance, a level previously identified as the token’s key breakout hurdle.
- Network’s DEX volume and Open Interest climbed significantly, alluding to stronger market participation ahead of the breakout attempt.
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