According to a cryptocurrency trading expert, AlanSantana, the recent explosive growth of the Kaspa (KAS) token may have pushed its price to unsustainable levels, leaving little room for additional upside in the near future.
In a detailed analysis, the expert points out that KAS has already risen a staggering 11,800% between October 2022 and November 2023. While the token did see an additional 23% gain from its November peak to a new high in February 2024, this pales in comparison to the 100-4,000%+ returns witnessed by hundreds of other cryptocurrency pairs during the same timeframe.
“Kaspa (KASUSDT) produced a peak in November 2023. It did a small retrace and sideways consolidation and then a new high,” the expert explains. “Here’s the thing, from peak to peak, November 2023 vs February 2024, Kaspa grew less than 23%. It took the pair more than four months to achieve this milestone.”
The implication is that after Kaspa’s parabolic ascent last year, the massive rallies that allowed exponential gains for other altcoins may no longer be feasible for KAS. As the expert bluntly states, “there isn’t much room left for additional growth.”
On the flip side, the analysis suggests Kaspa still has “plenty of room” for price declines from its currentelevated levels. “When prices are high up, we either stay away or sell, regardless of the pair,” the expert advises.
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Show more +While not outright calling for investors to exit Kaspa positions, the overall tone is one of caution towards chasing further upside after its monumental rally. As with any investment, careful risk management is prudent, particularly for assets that have already experienced exponential growth cycles.
The expert’s perspective aligns with the contrarian investing mentality of “buying low and selling high.” Per the advice provided, rather than piling into Kaspa’s extended uptrend, traders may be better served identifying opportunities in tokens that are currently bottoming out for potential bounces.
As the adage goes, “No tree grows to the sky.” Kaspa’s vertical move in 2022-2023 may have temporarily defied gravity, but according to this analysis, it has likely reached a ceiling, at least for the time being.
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