Kaspa (KAS) rose 12% to $0.034, outpacing the sluggish cryptocurrency market and demonstrating leadership among altcoins. The movement was supported by a rotation of capital from large assets into alternative coins — the CoinMarketCap altcoin index nearly doubled to 43 in September, although experts note that the rotation is still in its early stages. KAS approached a resistance level amid strengthening demand for altcoins, but it faces a significant obstacle in the form of upcoming inflation data from the U.S.
According to AMBCrypto, technical analysis places KAS below a resistance cluster extending from $0.0357 to $0.0385. The flag resistance coincides with a previous high of around $0.0376, creating a zone of technical convergence. The first target for price recovery is to overcome the $0.0357 level; if successful, the pressure will shift to $0.0376 and then to $0.0385. Trading volume for KAS surged by 363% in 24 hours, reaching $52.02 million, indicating growing market participation. However, a rebound from resistance could leave KAS within the flag structure and weaken the breakout attempt.
A critical factor for further movement will be the release of the U.S. Consumer Price Index, scheduled for September 11. Inflation data could dramatically alter investors' risk appetite and increase volatility in the cryptocurrency market. If inflation exceeds forecasts, it could divert speculators from altcoins and interrupt KAS's upward trend. At the same time, softer-than-expected inflation figures would give KAS buyers more room to attack resistance levels. Thus, Kaspa faces a double challenge: it needs to defend technical levels and withstand upcoming macroeconomic volatility.