Kaspa price targets 55% upside after breaking out of descending trendline

Kaspa price is showing signs of a full bullish reversal from its long downtrend after it broke out of a key descending trendline that has kept its price in check for months.

Kaspa (KAS) has rallied over 40% in the past seven days to an intraday high of $0.061 on Thursday, Nov. 27, its highest level since mid‑October. Trading at $0.059 at press time, the PoW cryptocurrency still sits 48% below its July peak, where its previous downtrend began before this week’s rebound.

Kaspa price rebounded after it saw renewed demand from whales after it touched a yearly low of $0.036 just days earlier, likely forming the bottom.

According to a recent X post by Kaspa Builders, eight Kaspa wallets bought the recent dip and have accumulated over 35 million KAS tokens.

Investors often see such buying from large players as a sign of confidence, which in turn could lead to a major trend reversal in the short term. Notably, such activity, especially at a time when the broader crypto market is gripped by extreme fear, also likely played its part in triggering the rebound.

The recent whale accumulation has likely drawn the attention of derivatives traders. Data from CoinGlass shows that Kaspa’s futures open interest jumped by 25% over the past day to $79.2 million. Additionally, the long-short ratio has moved above 1, which indicates that more traders are now leaning toward bullish bets. 

A strong derivatives market can reinforce positive sentiment among retail investors and help sustain Kaspa’s recent gains over the short term.

On the daily chart, Kaspa price has broken out of a descending parallel channel pattern, which forms when an asset’s price trends downward with lower highs and lower lows while remaining within two descending sloping trendlines.

Typically, when an asset’s price breaks out of such a pattern, it signals a potential shift from a bearish trend to a bullish one.

Kaspa price remains above the 20-day and 50-day moving averages, which indicates that bulls have regained control of the short to mid-term momentum.

More importantly, the altcoin has broken out of a key descending trendline that had been serving as stiff resistance since late July. Traders have likely taken the breakout as further confirmation that the bearish phase may have ended and a new upward trend could be underway.

As such, Kaspa could most likely rally to $0.092, with no major resistance levels appearing on the chart between its current price and that target. It lies roughly 55% above the current price.

On the downside, $0.051, the 50-day moving average, remains the key support level to watch in case of any short-term pullbacks.