The price of Kaspa is also following the general crypto downturn. Although the prices of various cryptocurrencies have been seeing some recovery today, the more general trend is still down.
Freeman Finance and Crypto, a YouTube channel with more than 6,000 followers, made a video to address the KAS decline. The presenter pointed out Kaspa’s strengths and historical patterns to make the price analysis.
At the time of the video, Bitcoin was down by 15% and Ethereum by 18% from their last local highs. Other major altcoins also had significant price declines.
Kaspa’s price was also down by 11%, but the presenter argued that it had some strong fundamentals and unique selling points that could help its price remain strong.
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Fundamentals and Strong Selling Points for Kaspa
- Kaspa has reputable founding contributors like Jonathan Sela, who has a post-doctorate from Harvard. He also leads the project.
- There is also Michael Sutton, who provides updates on KRC2 and programming aspects. They also have Shai Rory, an expert in consensus mechanisms.
- The crypto analyst thinks Kaspa’s scalability through its proof-of-work consensus is an advantage. The blockchain has a goal of achieving 100 blocks per second with its ongoing Rust transition.
- Bitcoin is also secure, as many people would argue, but Kaspa’s speed makes it look like a better option. Ethereum’s expensive gas fees and slower transaction rate also do not match Kaspa’s speed and scalability.
- Kaspa also has an increase in hash rate from 420 to 680 petahashes. This is significant for its network security.
Read Also: XRP Price Pumps Amid Crypto Market Rebound – Here’s Why Ripple’s Bullish Trend is ‘Intact’
How Low Can Kaspa’s Price Go?
The analyst also discusses how low the price of Kaspa can go as the prices of various cryptocurrencies face turbulence.
A reference was made to history to see how the price has behaved in the past during dips that follow all-time highs. Based on this, the analyst noted that Kaspa has had 40% and 60% price decreases during past retracements that follow all-time highs.
With a 40% price drop, we might see a retracement to 12.3 cents, while the price could dip to 11 cents if it drops by 46%.
The analyst opines that the drop is expected to be within this range. However, he understands that there are usually psychological difficulties in buying at lows when the price is trading deeper.
He advocates for looking for convincing metrics to back personal investment decisions. However, for Kaspa, he thinks its fair launch approach and the absence of many large venture capitalist holdings could reduce the risk of significant dumps.
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