Date: Sun, June 15, 2025 | 06:40 PM GMT
The cryptocurrency market is experiencing notable retracements from its strong rally earlier this quarter, with Ethereum (ETH) leading the correction. After peaking at $2,879 on June 11, ETH has dropped more than 11% and is now trading near $2,550. This pullback has dragged down major altcoins as well—including Kaspa (KAS).
KAS is down over 16% in the past 7 days, extending its 30-day decline to nearly 39%. However, amid the bearish sentiment, a potential bullish setup is emerging on the lower timeframes. If confirmed, it could set the stage for a short-term reversal.
Power of 3 in Play?
Zooming into the 4-hour chart, KAS is forming what looks like a textbook “Power of 3” setup — a smart money concept that unfolds in three distinct phases: Accumulation, Manipulation, and Expansion.
Accumulation Phase
Between May 30 and June 13, KAS moved in a tight sideways range between $0.92 and $0.79. This phase represented a battle between buyers and sellers, resulting in low volatility and indecisive price action. The zone, highlighted by a gray box on the chart, reflects accumulation — where institutional or smart money slowly builds positions without drawing attention.
Manipulation Phase
On June 13, KAS broke down sharply below the accumulation zone, reaching a local low of $0.7141. This sudden drop was likely a manipulation move, designed to trigger stop-loss orders and flush out retail traders before a true reversal.
This “fakeout” to the downside often marks the end of the manipulation phase. As long as KAS holds above the $0.7141 level, this move could be viewed as a shakeout — not the start of another leg down.
What’s Next for KAS?
The next key level to watch is the $0.79 mark. A reclaim of this level would indicate the beginning of the expansion phase, where smart money starts driving the price upward. A decisive breakout above the top of the previous range ($0.92) would likely accelerate this move and confirm the reversal pattern.
If the Power of 3 setup completes successfully, the projected target for the expansion phase lies around $0.1130 — which implies a potential 54% upside from the current price. Still, the entire structure hinges on whether KAS can defend the $0.7141 support level. A breakdown below this zone would invalidate the setup and could invite further downside pressure.
However, the ongoing global tensions—particularly the geopolitical strain between Israel and Iran—could invalidate the pattern if risk-off sentiment re-emerges in the broader market. As always, traders should stay alert to macro developments alongside technical signals.
Disclaimer: This article is for informational purposes only and not financial advice. Always conduct your own research before investing in cryptocurrencies.
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