KASPA USDT 4H CHART TA+price prediction
2024-09-23

Hi! Today I will analyze Kaspa / Usdt chart on 4h timeframe and I will look up what's following in near future - price prediction. TA by Blaž Fabjan

The descending triangle is highlighted, signaling a potential bearish continuation or reversal.

1. Resistance is marked on the chart, suggesting that the price is struggling to break above that level.

2. Support is seen near the base of the triangle. If this support level breaks, a more significant downside is expected.
Indicators:

VMC Cipher Divergences: Suggesting a mix of bullish and bearish divergences. Current momentum appears bearish, as evidenced by the divergences. However, there could be a potential reversal, depending on the market structure.

RSI (Relative Strength Index): Sitting near the lower range (~42.77), which suggests that the asset is not yet oversold, but it's approaching a level that could present a buying opportunity if oversold conditions are met.

Stochastic RSI: It appears oversold (~42.35), indicating that a reversal or upward momentum might be due soon.

Price Action:

The chart shows a potential downward move towards the lower boundary of the triangle, which is marked with an emoji representing the target zone. A bounce from this zone may lead to a bullish breakout, as indicated by the upward arrow.

If the price falls below the triangle, the next support is likely around the $0.1500 level (as per the emoji), with a possible further decline if that level is breached.

Volume:

The volume appears stable, but no significant spikes indicate a strong trend change or momentum yet. Low volume during a potential breakdown would suggest a weaker move, while a volume spike could confirm the breakout/breakdown.

Trading Plan

Short-Term Outlook (Bearish Continuation):

Entry: If the price breaks below the current support at ~$0.1600, short positions could be considered, targeting the next support near $0.1500 or lower.
Stop Loss: Set just above the resistance level, around $0.1700, to minimize risk.
Target: Short-term targets would be $0.1500 (first support), potentially moving lower depending on market conditions.

Bullish Reversal (Medium- to Long-Term Outlook):

Entry: If the price bounces off support (as indicated by the chart), wait for confirmation of a reversal before entering. Look for a close above $0.1700 as a bullish sign.
Stop Loss: Set below the triangle's lower boundary at ~$0.1550.
Target: First target could be around $0.2100, following the chart’s indication of a potential sharp upward movement. Breakouts from descending triangles often lead to significant upward momentum.

Confirmation:

Wait for confirmation of direction either through volume increase or a clear breakout from the triangle. Trade cautiously within the triangle as price movements could be choppy.
In summary, the chart suggests a possible short-term bearish movement towards the $0.1500 level, followed by a potential bullish reversal. Watch for breakout confirmation and act accordingly based on the defined trading plan.