One-Year Re-Accumulation Phase: Key to Kaspa’s Growth
This phase of sideways movement, often referred to as re-accumulation, typically follows strong upward trends and precedes potential breakouts. The analyst suggests that prolonged consolidation allows market participants to accumulate positions at lower prices, creating a solid foundation for future growth.
The breakout above this green zone, identified on the chart, signals a possible end to the re-accumulation phase. Historical price action shows that Kaspa has followed a consistent cycle of impulsive upward movements, consolidation, and subsequent breakouts. This pattern supports the bullish outlook for the token as it moves closer to retesting its all-time highs.
Minimal Resistance Above All-Time High
The analysis also emphasizes the importance of the previous all-time high as a key resistance level. Once this level is surpassed, the chart suggests minimal resistance due to the lack of historical price data in those ranges. This scenario could enable the price to enter a parabolic phase, characterized by sharp and sustained upward movements.
Insights from the Analyst’s Tweet
The tweet accompanying the analysis stresses the strategic positioning of “smart money” during the consolidation phase. Limit buy orders placed within the green support zone reportedly yielded optimal entries, aligning with the analyst’s expectations.
But remember, even though things look good on paper, we need to be careful with our trades – crypto prices can change very quickly in any direction.
Read Also: Lido DAO (LDO) Price Surges After Consolidation—Here’s Why It Could Climb Higher
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