Kaspa has quickly moved from a quiet altcoin to one of the more talked-about assets in the cryptocurrency market.

After climbing from around $0.030 to nearly $0.040 in a short span, the question now is simple.

Can this momentum continue toward $0.06, or is a pullback already overdue?

The recent rally did not happen randomly, as it followed a clear break above a key resistance zone around $0.035.

This level had held for weeks, and once it gave way, buyers stepped in with strong conviction.

Trading activity surged alongside the price, which is often a sign that the move has real participation behind it.

At the same time, the structure on the chart shifted into a pattern of higher highs and higher lows.

That change in structure is important because it signals that control has moved from sellers to buyers, at least in the short term.

Momentum indicators have also supported the move, with price pushing into a steep upward channel.

However, strong momentum often comes with a cost, and that cost is usually overheating.

Despite the bullish structure, several warning signs are becoming harder to ignore.

The most obvious one is the Relative Strength Index (RSI), which has climbed deep into overbought territory.

When an asset reaches these levels, it does not mean the rally is over, but it often means it needs to cool off.

At the same time, trend strength indicators suggest that the current move is not yet fully established.

This creates a situation where the price is rising, but the foundation beneath it is still developing.

There is also evidence that some holders are beginning to take profits as price approaches local highs.

In addition, rising activity in derivatives markets shows that more traders are entering positions, which can increase volatility.

When too many participants lean in the same direction, the market often moves against them before continuing higher.

Beyond the charts, there is a strong narrative driving interest in Kaspa.

News of a major network upgrade expected on May 5 has become a focal point for speculation.

This upgrade is expected to introduce new capabilities that could expand the network’s use beyond simple transactions.

As a result, the market is beginning to price in future potential rather than just current performance.

This kind of “buy the rumour” phase can push prices higher, but it can also create fragile rallies.

If expectations become too high, even a positive event can trigger a sell-off once it arrives.

That makes the period leading up to the upgrade especially important for price behaviour.

Right now, the price is sitting just below an important resistance zone near $0.040 to $0.042.

A clean break above this area could open the door toward $0.050 and eventually $0.055 to $0.060.

This would align with the broader bullish outlook that many traders are watching.

On the downside, the first area of support sits around $0.035, which was the previous breakout level.

If price falls back below that zone, it could signal a loss of momentum and a move toward $0.032.

A deeper correction could even test the $0.028 to $0.030 range if selling pressure increases.

The post Kaspa (KAS) price outlook: rally to $0.06 or pullback ahead? appeared first on Invezz

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