In a YouTube video analysis, Crypto Zx examined the current market position of Kaspa (KAS). He highlighted its challenges in the short term and long-term potential.
Despite the overall positive trend in the crypto market, Kaspa has had a slight dip, falling 3.6% against USD and 5% against BTC as noted by Crypto Zx.
The analyst emphasized the impact of rising Bitcoin dominance on altcoin performance, including Kaspa. As per the time of his analysis, Kaspa’s price was at around 16.25 cents, with its market valuation dropping below $4 billion.
Moreover, the daily trading volume hovers around $147.7 million. This recent performance contrasts with the broader crypto market trend, where most digital assets are showing gains.
Bitcoin’s Influence on Kaspa
BTC’s upward movement has influenced the overall crypto market. However, Kaspa has lagged behind, experiencing a 4% decline.
Moreover, Crypto Zx pointed out that Bitcoin’s dominance index is reaching yearly highs, which typically results in decreased altcoin performance.
“Bitcoin dominance is starting to reach yearly highs, which is not the best news for altcoins,” Crypto Zx stated. This trend suggests that investors are favoring Bitcoin over altcoins like Kaspa.
KAS Analysis and Market Sentiment
Despite the short-term setback, Crypto Zx remains optimistic about Kaspa’s long-term prospects.
The analyst noted that Kaspa has shown positive momentum over the past few weeks. “If you got into Kaspa just two days back, you are up 30% still right now despite the recent dip,” he explained.
Technical indicators reveal that Kaspa is facing resistance at current levels. However, the crypto continues to create higher highs and higher lows, indicating an overall upward trend. This pattern suggests potential for future growth once market conditions improve.
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Future Projections and External Factors
Crypto Zx discussed potential external factors that could influence Kaspa’s future performance. Speculation about the Federal Reserve’s actions, including possible rate cuts and fund injections into the stock market, could positively impact the crypto market wholly.
The analyst maintains a bullish long-term outlook for Kaspa. “Kaspa is creating higher highs and higher lows and is still in an upward trend,” Crypto Zx emphasized. This observation supports his view that Kaspa remains a project with strong recovery potential.
While Kaspa faces short-term challenges due to rising Bitcoin dominance, technical analysis suggests a positive trajectory in the long run.
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The post Kaspa (KAS) Wrestles Bitcoin Dominance: Analyst Sees Short-Term Dip, Long-Term Gains appeared first on CaptainAltcoin.