Kaspa (KAS) is making a comeback after a sharp drop, reclaiming the $0.10 level. After testing lower support, the cryptocurrency is drawing fresh investor interest.
In a YouTube analysis, analyst Mitchell Lim remained bullish on Kaspa’s long-term potential. Despite Kaspa’s recovery above $0.10 from its recent $0.07 low, Lim hasn’t ruled out the possibility of a further drop to $0.05.
However, he views the crypto as undervalued and suggests that patient investors might find this an attractive entry point. If the price is unable to maintain its present pace, Lim determined that $0.05 is the next crucial support level.
He explained that reclaiming $0.09 is necessary to prevent further declines, adding that the cryptocurrency’s ability to hold above this level could signal stability.
Kaspa trades at $0.103 at press time, according to CoinGecko. This signifies a 17.53% rise in the last day. KAS has dropped by 1.83% over the last week, emphasizing persistent market swings. Lim observed that although short-term fluctuations are typical, he stays optimistic about Kaspa’s long-term prospects.
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Analyst’s Long-Term Kaspa Outlook and Strategy
Despite the recent dip, Lim stressed that he does not view Kaspa’s movement as bearish. Instead, he considers the price drop an opportunity for accumulation. “If Kaspa drops to 5 cents, I’m buying,” he stated, reiterating his confidence in the project’s fundamentals. He compared Kaspa’s current phase to Bitcoin’s early years, suggesting that patient investors could benefit from holding.
Lim encouraged a dollar-cost averaging (DCA) approach, stating that he intends to accumulate more Kaspa over time. He also mentioned plans to shift holdings from Solana and Ethereum into Kaspa if the price reaches $0.05.
Kaspa’s development team is working on smart contract integration, a feature Lim believes could enhance its utility.
According to him, testing has been completed, and full implementation is approaching. This upgrade could position Kaspa as a more competitive player in the blockchain space. “Smart contracts are coming, guys! Kaspa holders, this is going to be very exciting,” he said.
Market Sentiment and KAS Future Expectations
Lim advised investors against panic selling, urging them to view Kaspa’s market cycle within a broader context. He emphasized that corrections are natural in crypto and that Kaspa is unlikely to remain at $0.05 for long if it reaches that level.
“Kaspa’s first real bull run is coming, and I believe it will reach new highs in 2025,” he predicted. With strong developer activity and increasing adoption, Kaspa’s future trajectory remains a topic of interest for market watchers.
Read also: XRP Price Prediction For February 11
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