Kaspa (KAS) has recently demonstrated some promising signs, particularly after bouncing off the strong support at the $0.11 level. Since March 2024, this $0.11 price point has consistently acted as a solid demand zone, and its defense by buyers has fueled optimism. With buying pressure gradually rising, there’s a growing possibility that Kaspa could see more upward movement in the near future.

Current Market Overview

As of mid-January 2025, Kaspa’s price action still exhibits a slightly bearish structure on the daily charts. The most recent rally from early January reached a high of $0.1291 but failed to surpass this resistance level, leaving a lower high in its wake. For Kaspa to flip the market sentiment and shift toward a bullish outlook, it must clear this $0.13 level, which could signal a continuation of the uptrend.

Despite this, there are some encouraging signs beneath the surface. The Relative Strength Index (RSI) is currently sitting around the neutral 50 mark but is close to crossing into bullish territory, indicating that upward momentum could soon pick up. Additionally, the On-Balance Volume (OBV), which tracks buying and selling pressure, has shown an upward trend, confirming the presence of buyers in the market. This could suggest that KAS is gearing up for a potential breakout if it can surpass key resistance levels.

Key Levels to Watch

The $0.11 level has been a key point of support for Kaspa for several months, and it has provided a foundation for price rallies. KAS has formed a range between $0.11 and $0.19, making these levels critical for determining the altcoin’s next move. Currently, the price is sitting closer to the lower end of this range, but buyers are showing strength by consistently defending $0.11.

Traders are now looking for a move above $0.13, which has been identified as a key short-term target. A breakout past this resistance would suggest that KAS has more room to rise, potentially moving toward $0.14 or even higher. The 1-month liquidation heatmap indicates a high concentration of liquidation levels around the $0.13-$0.133 zone, meaning that a move into this area could trigger a liquidity sweep, driving further upward momentum.

Liquidity and Market Sentiment

Looking at the 2-week liquidation heatmap, Kaspa’s price action has recently exhibited a pattern of liquidity hunting, especially around the $0.11 region. If this pattern repeats, Kaspa could soon make a push toward $0.13-$0.14, at which point the price may consolidate. Such consolidation would allow the market to build more liquidity, setting the stage for more significant price movements.

Kaspa’s price is still influenced by broader market trends, particularly Bitcoin’s (BTC) price action. If Bitcoin experiences another rally, it could have a short-term effect on KAS, potentially leading to a brief pullback before continuing its upward trajectory. Traders should stay alert for such short-term fluctuations, but the overall sentiment remains bullish as long as KAS holds above the $0.11 support.

Conclusion: Bullish Outlook for Kaspa

In conclusion, Kaspa appears poised for potential growth, with strong support at $0.11 and bullish targets around $0.13. The growing buying pressure, along with the liquidity clusters around $0.13, suggests that Kaspa could continue to rise in the coming days. If it manages to break above the $0.13 resistance level, further gains toward $0.14 and beyond are likely. Investors should keep an eye on these levels as Kaspa moves forward, as the market sentiment looks favorable for the altcoin’s price to continue its upward momentum.