Kaspa is currently ranked at the 28th spot, boasting a market capitalization of approximately 3.3 billion USD. The price of Kaspa hovers around 13.5 cents, and it has experienced a decline of over 16% in the last seven days.
However, Kaspa is not the only project that has faced a downturn; other notable projects like Render have seen a drop of over 20%, Stellar has fallen by 9%, ICP has dipped by 14%, and Pepe by 14% as well.
Despite this, some projects, such as SUI, have shown resilience, performing well even in a declining market. It is important to remember that the broader cryptocurrency market is down, and Kaspa is, to some extent, reflecting this trend.
Kaspa’s Position Among Market Trends
Despite the decline, being ranked 28th in the market is still a significant achievement. Kaspa remains within the top 30, which signals stability and ongoing relevance in the competitive cryptocurrency landscape. From a technical standpoint, it is essential to evaluate Kaspa’s performance in relation to larger market movements, especially considering Bitcoin’s influence on the entire crypto space.
The Influence of Bitcoin’s Technicals
In the previous weeks, Bitcoin had a significant breakout. After a period of stagnation, Bitcoin broke through a resistance level set by a previous high. The most optimistic sign was Bitcoin breaking out of a channel and closing above it, although this upward movement was short-lived, as the price quickly fell back within the channel. This development essentially means that nothing much has changed for Bitcoin, and it continues to trade within the same range it has been stuck in for the past seven months.
The positive aspect for Bitcoin is that it has formed higher highs when compared to previous points, indicating some bullish momentum. However, for the trend to be confirmed, Bitcoin would need to break out of this channel decisively. Until that happens, it’s possible for Bitcoin to retest the lower trendline of the channel, which could result in prices around the 50k to 52k range. While this may not be a certainty, it is a possibility that cannot be overlooked. These market conditions also play a role in Kaspa’s performance, as Bitcoin’s movements often set the tone for the entire crypto market.
Kaspa’s Power Indicator
A common question surrounding Kaspa is whether its power has been broken. Despite what some may think, the power is not broken. Many traders look at the price in relation to bands and assume that if the price dips below a certain band, the power is broken. However, this is not how it works. Based on the adaptive power indicator, Kaspa remains inside the band. In fact, Kaspa has only touched this band once in its entire history, approximately 1.5 years ago.
It is possible that Kaspa could revisit this level, and alerts have been set to monitor this situation. In this scenario, purchasing more Kaspa could be a strong move. Although it is not certain that Kaspa will reach this level again, the cryptocurrency appears to be oversold, making it a potential buying opportunity. The R² value of 0.9 (almost 0.95) in the power model further reinforces that Kaspa’s power remains intact, with both price and time fitting well within the model’s predictions.
The Relationship Between Fair Value and Market Price
Currently, Kaspa’s fair value price is estimated to be around 30 cents, meaning it is significantly undervalued at its present market price of 13.5 cents. From this perspective, the current price level offers a strong buying opportunity, especially for long-term investors who believe in Kaspa’s fundamentals and future potential.
Support and Resistance Levels in Kaspa’s Market
When examining Kaspa’s support and resistance levels, it becomes clear that the cryptocurrency has broken through a key level around the 14-cent mark. Some market participants are now predicting a further decline to 10 cents, especially if Bitcoin’s price falls to the 50k level. While this is a possibility, it is not a certainty. In fact, there are signs that Kaspa may be nearing the bottom of its current cycle.
It is possible for Kaspa to reach levels around 12.9 cents, 12.4 cents, or even as low as 11.3 cents. However, the feeling is that Kaspa may have already bottomed out. This view is subjective but is supported by several technical indicators.
Kaspa’s Recent Decline
To be fair, the recent drop in Kaspa’s price was unexpected. Many traders, including myself, believed that Kaspa had reached its lowest point at 14.5 cents, which historically has been a strong support and resistance zone. The ease with which Kaspa fell through this level came as a surprise. Initially, there was an expectation that Kaspa would begin an upward movement after testing this level, especially since there had been a “fake out” to nearly 19 cents before the decline resumed. Despite the current downtrend, Kaspa’s fundamentals remain strong.
Kaspa’s Fundamentals Remain Intact
Kaspa continues to be a fundamentally sound project. Although some investors are selling due to the performance of other projects like SUI, which has performed well recently, Kaspa’s fundamentals have not changed. Its hash rate remains stable, and transactions per second (TPS) are consistent.
Additionally, accumulation continues as investors see Kaspa as a buying opportunity at these levels. Recent purchasing activity indicates growing interest in the project despite the current price action.
What’s Next for Kaspa?
Can Kaspa’s price dip below 10 cents? It is possible, but such a scenario would likely happen quickly. Market watchers are closely monitoring the next moves, particularly around key resistance levels. Whether Kaspa breaks through resistance or faces further rejection will be pivotal in determining its short-term future. However, it’s important to note that not all projects move in unison, and Kaspa’s trajectory may not necessarily align with others.
Final Thoughts
Kaspa remains a fundamentally strong project despite recent price declines. It is considered a strong buy by many who are willing to exercise patience and wait for the project to rebound. Conviction in Kaspa has not waned, and many are continuing to buy at current price points. Whether Kaspa is poised for a significant upward move or continues to hover around its current levels remains to be seen. However, the project’s stability and potential upside make it a compelling choice for long-term investors. Time will tell whether Kaspa will break through resistance and return to its previous highs.