Date: Sat, Jan 03, 2025 | 01:26 PM GMT
As 2026 kicks off, the broader cryptocurrency market is showing renewed stability. Ethereum (ETH) has reclaimed the $3,100 level, and several major altcoins are already beginning to pick up momentum. Against this improving backdrop, Kaspa (KAS) is quietly positioning itself as a potential late mover, with its chart structure starting to flash early bullish signals.
While KAS is trading slightly in the red today and remains mostly flat on the weekly timeframe, the more important story is unfolding beneath the surface. Recent price action suggests a meaningful structural shift may be underway — one that could mark the early stages of a bullish continuation if confirmed.
Source: Coinmarketcap
Rounding Bottom in Play
On the 4-hour timeframe, Kaspa appears to be forming a rounding bottom pattern, a classic bullish reversal structure that typically develops after a prolonged corrective phase. This pattern reflects a slow but steady transition from distribution to accumulation, as selling pressure weakens and buyers gradually regain control.
The setup began after KAS faced strong rejection near the $0.06310 neckline zone, which triggered a sharp decline through late November and December. That downside move eventually found strong demand near the $0.040 level, which has since acted as a key support area. Multiple defenses of this zone prevented further downside and helped establish a stable base for a potential trend reversal.
Since carving out that bottom, KAS has started to curve higher in a smooth, rounded fashion — closely matching the textbook structure of a developing rounding bottom. The recent stabilization above the $0.045 region further supports the idea that downside momentum is fading.
Kaspa (KAS) 4H Chart/Coinsprobe (Source: Tradingview)
A key technical level now comes into focus: the 200-period moving average, currently hovering near $0.04714. This level has acted as dynamic resistance during the recovery phase, and reclaiming it would mark an important shift in short-term market structure.
A sustained move above the 200 MA would indicate that buyers are regaining control after months of corrective price action and could act as the trigger for a stronger upside continuation.
What’s Next for KAS?
For full confirmation of the rounding bottom pattern, KAS must eventually reclaim the $0.06310 neckline resistance. A clean breakout above this zone would validate the entire reversal structure and could open the door to a broader bullish expansion phase, with momentum traders likely re-entering the market.
Until that breakout occurs, the pattern remains in development. Short-term consolidation or shallow pullbacks remain possible, especially near moving average resistance. However, as long as price continues to hold above the $0.04245 support base and maintains higher lows, the broader bottoming structure remains intact and constructive.
In the near term, all eyes remain on the 200 MA and the neckline zone. How Kaspa reacts around these levels will likely determine whether this emerging bullish setup evolves into a confirmed breakout move or requires more time to mature.
