Both Cardano (ADA) and Kaspa (KAS) have experienced sizable price surges in this current crypto bull market. However, both are also a long way from their respective all-time highs. Can they regain these highs, or will they continue to trend downwards?
$ADA breakthrough or rejection?
Source: TradingView
$ADA is having a great Tuesday. Up 12% on the day so far, it might appear that all is rosy for one of the most passionate and vociferous communities across the whole of the cryptocurrency space.
Looking at the price on the weekly chart, it can be seen that $ADA (ADA/USDT) is up against the major horizontal resistance, plus a coinciding 0.5 Fibonacci level. Should the bulls push the price through here, and the price manages to confirm above, the local high at $1.32 is a real possibility.
That said, this is very strong resistance, and the price has a good probability of being rejected from here. Also, could it be that this was just a retest and confirmation of this resistance?
One element in favour of the $ADA bulls is that the weekly Stochastic RSI is dropping. It should bottom in the next couple of weeks and then there is the possibility of strong upside price momentum returning.
$ADA about to get rejected against $BTC?
Source: TradingView
The $ADA chart against $BTC (ADA/BTC) is however not one of the best. A total 92% correction from the top in 2021 has only so far reduced to 86% today. The weekly chart shows the major horizontal resistance levels. The price is up against one now, and it will be crucial that the bulls flip this level back into support. Down below is the bottom support level. The price must not fall below this.
The Stochastic RSI is coming down. However, this is more likely to lend itself to a rejection of the current horizontal resistance before it is able to bottom and potentially send the price up again. The series of lower highs and lows must be broken, and soon.
$KAS drops out of 15-month range
Source: TradingView
$KAS (KAS/USDT) followed a really nice uptrend through 2023 and into the middle of 2024, before making an all-time high of $0.20. In fact, the price sidetracked within a range from November 2023 until earlier this month, when the price dropped out.
This is why the current struggle at the $0.10 horizontal level is so important. If the bulls can force the price back into the range, this will have been just a fake-out, and the price can head back to the top of the range.
However, if the price is rejected from here, this could be seen as a confirmation of the breakdown, and the price could drop a lot lower quite quickly, given that there is very little support until around $0.05.
The weekly Stochastic RSI is heading up, and has passed the 20.00 level, which should spell upside price momentum. Therefore, as long as these indicator lines continue upwards, the bulls should have the advantage. All is not lost.
Last chance for $KAS against $BTC
Source: TradingView
Looking at $KAS against its $BTC pair on the daily chart (KAS/BTC), things do not bode well. A strong downward trend since the end of 2023 has yet to be broken. The Stochastic RSI is rising, but if the overhead resistance is not broken and confirmed above, a rejection from this level could spell disaster.
Why hold $ADA or $KAS and not $BTC?
In summary, for short-term trades, there is possibly value to be had in backing either of these two cryptocurrencies. However, looking at their long-term performance against $BTC you would have to ask the question: Why hold either and not Bitcoin?
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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