KASUSD for more downside?
As described previously, the blue channel line shown on this logarithmic chart has been a marker of discount buying strength for KAS since May 2023. In the past, I have used this as a tool (along with other technicals) to buy more KAS. In my last post about KAS I alluded to a negative break through this channel if KAS is obeying the power law, however, given my track record with the logarithmic channel and KAS's technical repetition I favoured a bullish outcome, with the green circle being somewhere we might see buying strength.
Now KAS is potentially, and possibly convincingly (time will tell), breaking down below this line. It's important to note that there are many zones of support below this area, so a significant price drop is not necessarily on the cards, however with pretty much all mid-to-large market-cap ALT projects dropping so far this week, we will need to look at how they perform to gauge strength of the market as a whole.
Going forwards, we can also use the charts at kasping.streamlit.app/ to look for buying zones, in particular the rainbow channel tab. In the past, KAS has bounced from, or near to, the green support line numerous times. Currently, the green line sits at $0.09., however, in the bearish scenario, it's unlikely to be a straight drop. The current angle of descent suggests an intersection at $0.1, which coincides with a support line (green line) on my chart, and psychological support. According to the 'future power law' chart at the link above, if KAS does indeed obey the power law, then the fair value should drag price action back up in the mid-to-long term. And of course, as is the case always with technicals, they could be wrong. We just use them as a measure of risk, and a pattern recognition tool. However, in my experience data analysis and technical patterns are king.
Now KAS is potentially, and possibly convincingly (time will tell), breaking down below this line. It's important to note that there are many zones of support below this area, so a significant price drop is not necessarily on the cards, however with pretty much all mid-to-large market-cap ALT projects dropping so far this week, we will need to look at how they perform to gauge strength of the market as a whole.
Going forwards, we can also use the charts at kasping.streamlit.app/ to look for buying zones, in particular the rainbow channel tab. In the past, KAS has bounced from, or near to, the green support line numerous times. Currently, the green line sits at $0.09., however, in the bearish scenario, it's unlikely to be a straight drop. The current angle of descent suggests an intersection at $0.1, which coincides with a support line (green line) on my chart, and psychological support. According to the 'future power law' chart at the link above, if KAS does indeed obey the power law, then the fair value should drag price action back up in the mid-to-long term. And of course, as is the case always with technicals, they could be wrong. We just use them as a measure of risk, and a pattern recognition tool. However, in my experience data analysis and technical patterns are king.
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