Kaspa holders have lived through this cycle before. Big ideas around blockDAG proof of work pulled attention early. Price followed, then slowly faded as capital rotated into newer narratives. An analyst from the AirdropsDotCom YouTube channel argues that 2026 could punish unprepared KAS holders again, not because the tech failed, but because market conditions may fail to line up.
Kaspa runs on a blockDAG proof of work structure built around the GHOSTDAG protocol. Multiple blocks confirm simultaneously, which allows higher throughput than traditional linear chains. The AirdropsDotCom analyst highlights that Kaspa aims to combine Bitcoin level decentralization with modern transaction speed. That promise attracted early believers.
Kaspa also launched fairly without any ICO or early allocation to venture capital. Every KAS entered circulation through mining. Emissions decline gradually instead of following sharp halving shocks.
Finality often appears within seconds due to rapid block production. A major upgrade increased block output significantly, strengthening the technical foundation. Despite these positives, KAS price has not rewarded patience.
Kaspa Network Health Weakens As KAS Price Slides
The analyst from AirdropsDotCom points to hash rate trends as a warning sign. Mining profitability collapsed as KAS price dropped. Daily mining revenue fell from much higher levels to only a few dollars per day. Many miners shut down as costs exceeded returns. Lower participation reduces network security over time. That risk matters for any proof of work chain.
Funding rates also lost strength. Neutral funding shows leveraged conviction faded. When leverage disappears and spot demand fails to replace it, price becomes fragile. Kaspa price remains locked in a downtrend on higher timeframes. Lower highs and lower lows dominate the structure, and current support already failed once to deliver a sustained rebound.
Kaspa Price Prediction Shows Clear Upside And Downside Levels
Technical structure defines the near term outlook. The analyst explains that a clean bounce from current support, followed by a break above resistance, could push KAS price toward $0.10. That scenario requires strong follow-through and fresh demand. The chart structure does not guarantee that outcome.
A breakdown below support paints a darker picture. A failed reclaim could send KAS price toward the next major zone near $0.014, representing a 60% to 70% drawdown from current levels. That downside scenario remains active as long as market conviction stays weak.
Macro conditions shape the longer-term outlook. The AirdropsDotCom analyst notes two critical triggers. The first involves the business cycle. Risk assets historically perform best when purchasing manager indexes move above 50. Crypto rallies aligned with this pattern in 2013, 2017, and 2021.
Read Also: XRP Price Prediction for February: The Worst May Still Be Ahead
The second trigger centers on liquidity. Quantitative easing injects capital into risk assets. Without renewed liquidity, demand struggles to absorb supply. Kaspa price remains vulnerable until both conditions align.
The analyst models upside targets using total crypto market cap assumptions. A future expansion to $9 trillion combined with Kaspa reclaiming 0.12% dominance could push KAS price toward $0.37. A full return to the previous 0.25% dominance level places KAS price near $0.75. These outcomes depend entirely on macro alignment and renewed liquidity.
Subscribe to our YouTube channel for daily crypto updates, market insights, and expert analysis.
