Kaspa (KAS) has experienced a remarkable rally, catching the attention of traders and investors alike. In the last 24 hours alone, KAS surged by 11.92%, adding to a month-long gain of 27.15%. However, as the cryptocurrency approaches its all-time high (ATH), it faces a critical resistance level that could determine its next move. With mixed market signals, KAS’s future trajectory is far from certain.

The Road to ATH: Resistance at $0.1750

Kaspa’s recent surge follows a breakthrough from a long-standing descending trendline, which had held back its price for five consecutive attempts. This breakout ignite renewed optimism, with buyers eager to push the price toward a new ATH. Currently, KAS is eyeing the $0.1750 resistance level, a significant hurdle that has previously halted its upward momentum.

For KAS to set a new record, it must convincingly trade above this resistance. Doing so could pave the way for the asset to surpass its previous ATH of $0.2079. However, if the price fails to break through this critical level, there’s a risk of a price pullback, potentially returning to the descending trendline and limiting future gains.

Mixed Market Sentiment and Market Activity

Despite the strong bullish push, market sentiment is divided. While the rise in KAS’s price signals optimism, additional metrics show a mixed outlook. On-chain data suggests that market participants are torn between bullish and bearish forces, making KAS’s next move uncertain.

The Funding Rate, a key indicator of market sentiment, stands at a positive 0.0200%, suggesting that long positions (buyers) are paying shorts to maintain balance between spot and futures markets. Positive funding rates typically indicate bullish sentiment, supporting the view that KAS could continue its upward trajectory.

Furthermore, Open Interest has risen by 22.12%, reaching $124.95 million, reflecting a surge in active contracts. The increase in open interest indicates heightened market activity, with bulls holding a significant share of these contracts. This suggests that traders remain confident in KAS’s potential to continue climbing.

Bearish Pressure and Liquidations: A Growing Threat

Despite these bullish signals, bearish sentiment is starting to weigh on the market. Long liquidations have been significant, particularly on shorter timeframes. In the past hour, $90.78K worth of long positions were liquidated compared to just $6.97K in short positions, signaling an increase in downward pressure.

Over the 24-hour timeframe, long liquidations totaled $261.61K, further amplifying the bearish momentum. The long-to-short ratio currently sits at 0.9048, meaning there are more short contracts than long ones in the market. This imbalance suggests that the market may be vulnerable to corrections, as the majority of positions are exposed to potential price reversals.

What’s Next for Kaspa?

With the price nearing its ATH, KAS faces a crucial test. While the surge in market activity and funding rates point to a continuation of the bullish trend, the bearish pressure from long liquidations cannot be ignored. If the bulls manage to overcome the $0.1750 resistance and maintain control, KAS could break its ATH and continue its rise. However, if the bears regain control, we may see a correction or heightened volatility in the short term.

Kaspa’s journey to new heights is uncertain, but its recent price action suggests that it could either break through resistance and set new records or face a temporary reversal as market sentiment remains volatile. Investors should monitor key resistance levels, liquidations, and overall market trends to gauge KAS’s next steps.