The crypto market is never short of twists, and Kaspa (KAS) is no exception. In a detailed video, the expert from Freeman Finance and Crypto examined Kaspa’s market performance, technical challenges, and its promising future.
The analyst remains optimistic about the project despite the price drop, highlighting its solid foundation and distinct market position.
What you'll learn 👉
Current Challenges Facing Kaspa
Kaspa’s market trends lately have ignited concern among investors. The token’s 30% price decline over the previous month, which has it ranging around $0.10 to $0.12, was noted by the analyst.
Since early projections of a $1 valuation have not yet come to pass, many investors are doubting the company’s future growth. The market capitalization remains below $3 billion, which the expert views as a potential growth bottleneck.
Bearish patterns on Kaspa’s price chart were also noted. The analyst identified a possible Head and Shoulders formation, signaling further downside risk. Key support levels were pinpointed at $0.10, $0.07, and $0.05, with a breakdown likely if bearish momentum continues.
Additionally, the analyst mentioned that Kaspa’s correlation to Bitcoin has weakened, despite initial predictions of a similar trajectory based on Bitcoin’s “rainbow chart.”
Bullish Catalysts Driving Optimism
The analyst believes Kaspa’s long-term potential outweighs its short-term struggles. One significant factor is the token’s supply and demand dynamics. With over 88% of Kaspa tokens mined, future supply constraints could drive prices higher as demand increases.
Another promising indicator is the growth in network hash rate, now standing at 1.35 xH/s. This rise reflects increased miner investment and enhanced network security. The analyst stated, “More power to the network signals resilience and strength.”
Technical Developments and Future Potential
Kaspa’s ongoing development in smart contracts further fuels optimism. Plans to implement layer-1 DeFi and scalable applications are underway, alongside a scalability upgrade enabling 10 blocks per second. The analyst praised these advancements, calling Kaspa “the ultimate layer one.”
Drawing comparisons to Sui, the expert suggested Kaspa could witness a parabolic rise. They projected a possible market capitalization surge to $15 billion, contingent on broader market conditions.
Read also: XRP and Cardano Show Growth, But This Altcoin Is Losing Holders
A Focus on Fundamentals
Despite Kaspa’s price struggles, the analyst urged investors to focus on the project’s robust fundamentals. They emphasized that Kaspa remains a leading proof-of-work blockchain with strong development progress.
“Nothing has changed about the project,” they concluded, encouraging viewers to look beyond short-term fluctuations. Hence, if KAS price gains momentum, it could rally to $1 and beyond.
Follow us on X (Twitter), CoinMarketCap and Binance Square for more daily crypto updates.
Get all our future calls by joining our FREE Telegram group.
We recommend eToro
Wide range of assets: cryptocurrencies alongside other investment products such as stocks and ETFs.
Copy trading: allows users to copy the trades of leading traders, for free.
User-friendly: eToro’s web-based platform and mobile app are user-friendly and easy to navigate.
