Key Takeaways:
- KAS token lost 5% on Sep. 11 and sees more losses ahead.
- The bearish rising wedge formation predicts an 88% drop.
- The decline came after the traders took the Bybit hype profits.
YEREVAN (CoinChapter.com) — Kaspa token KAS dropped 5% to $0.038 on Sep. 11, reversing from an uptrend that has witnessed its price rising 22% in a week. However, the bears could put more red candles on the charts as KAS traded within a rising wedge.
KAS price could lose another 88%
The rising wedge consists of two converging trendlines that take the asset value incrementally higher while lowering the price swing. KAS has traded within the formation since early April but has not confirmed it as on Sep 11.
If the token breaches the support line, the subsequent drop could equal the maximal wedge height, pinning the target at $0.004, or 88% lower than the current value. Meanwhile, the token’s trading volumes increased 65% against the dropping price, which could signify a selloff.
The Bybit Euphoria subsided.
As reported in the previous Kaspa review, the token’s latest 22% uptrend was due to the fresh Bybit exchange listing. The announcement came on Sep 6 and pinned the listing time at 10:00 a.m. UTC on Sep. 7 for the KAS/USDT pair.
However, the team teased the listing earlier and didn’t deliver, possibly causing the August plunge. On Aug. 2, Kaspa completed its crowdfunding campaign.
“The Tier-1 Exchange Crowdfund for Kaspa has been successfully completed, thanks to your immense support! More details coming soon,” tweeted the project. A listing did not follow then, which could have disappointed the KAS holders.
The Kaspa team did not have any other fundamental news since. Thus, the Sep 11 decline could be explained by traders taking profit from the Bybit listing-generated hype. Notably, the exchange is now the third largest KAS market after KuCoin and Gate.io, with 0.69% of the overall trading volume at $86,200.
