Kaspa (KAS/USD) saw a significant drop from its high of $0.065 in October, falling to a swing trade buy zone around $0.044. Fortunately, the cryptocurrency bounced back quickly, raising questions about its future direction. Since August, the price has consistently stayed below a descending resistance trendline, which has halted several rallies. This trendline has been reliable, often preventing upward movement and creating lower highs. Recently, the support at $0.044 allowed for a strong rebound, pushing the price above $0.050. Kaspa is now nearing resistance at about $0.053–0.054. What happens next is unclear; the cryptocurrency could either break past the downtrend or get rejected again. If it manages to break through the trendline, it could target the mid-$0.060s, possibly returning to previous highs. On the other hand, if it fails to break through, the price may fall back to $0.044 or as low as $0.037 if selling increases. The low trading volume during recovery raises concerns about sustained buying interest. Buyers at $0.044 have made gains, while the $0.037 level remains a safety net for new investors. Looking back, we recall the descending trendline in late 2024, where the rejection at $0.054 led to a drop back to the low $0.03s in early 2025. Now, on December 2nd, 2025, Kaspa is facing another critical moment, this time at the $0.18 resistance level. The situation feels very similar, causing traders to stay alert in the coming weeks. For derivative traders, signs of a potential breakout are forming in the futures market. Open interest in KAS perpetual contracts has risen above $50 million, a six-month high. Meanwhile, funding rates on exchanges like Bybit have been positive for the past two weeks, suggesting that long positions are dominant and willing to pay extra to keep their investments. Supporting this bullish outlook is strong network growth, as Kaspa’s hashrate recently reached a new all-time high of 250 PH/s last week. This positive trend is happening alongside an optimistic market sentiment, with the Crypto Fear & Greed Index at 72. These factors create a favorable environment for a sustained upward move if we can break this resistance. Given this context, a good strategy is to watch for a daily candle close above $0.185 with high volume to confirm the breakout. Traders might consider entering long positions on this confirmation, targeting the psychological $0.25 level. A stop-loss could be set just below the recent support at $0.17 to manage risk if the breakout turns out to be false. However, the memory of the late 2024 rejection is still vivid. If the $0.18 level acts as strong resistance and selling pressure rises, short positions could be initiated. The initial goal for such a trade would be the support zone around $0.15, where we previously observed consolidation in October 2025.

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