Memes are still dominating the cryptocurrency market, and utility-focused coins, especially those that have already experienced substantial gains in the past, are not faring as well. One of those coins is Kaspa (KAS).
Kaspa’s price action has been sluggish lately, with the coin down 3.5% today. Here are three reasons why KAS holders could potentially be concerned as we approach the end of the year.
What you'll learn 👉
Slow Price Action
The Kaspa price has been trading sideways for months now. After reaching an all-time high of around $0.2 in August, KAS entered a correction phase, and in the last few weeks, it has been stuck in the $0.10-$0.12 range. This kind of price action can be frustrating for traders and make them look for opportunities elsewhere.
Profit-Taking Pressure
Kaspa’s all-time low was around $0.0002, which means many early investors are sitting on substantial gains. As these traders take profits, it could put a huge selling pressure on the KAS price.
Memes Outperforming Utility Coins
Kaspa is a utility-focused cryptocurrency with a unique blockDAG (Directed Acyclic Graph) architecture, utilizing the GHOSTDAG protocol. However, in this current market environment, meme-based coins have been outperforming other altcoins. Recent examples include NEIRO, POPCAT, and D.O.G.E., all of which pumped over 100% in a short period of time.
This trend suggests that traders’ focus is predominantly on the meme coin sector, which could mean less capital flowing into utility-focused projects like Kaspa.
While it’s important not to write off Kaspa entirely, KAS holders and potential investors do have legitimate reasons to be cautious about the coin’s short-term prospects, given the current market dynamics.
Read also: Kaspa’s On-Chain Metrics Explode – Will KAS Price Do the Same?
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