Kaspa is definitely not running like before. In fact, while most altcoins (such as Aptos) recovered nicely this week, the KAS price lost 8.5% and is now trading in the $0.13-0.135 range.
But why is the Kaspa price moving sideways recently? Crypto YouTuber Phil Prince weighed in on the situation around KAS.
Kaspa has been trading sideways and is currently at range lows, even though the broader market looks strong and the news for Kaspa has been positive. This sideways movement has been happening since June, lasting through the summer, a period often marked by low activity in crypto markets.
Despite the stagnant price, there have been positive developments in the Kaspa ecosystem. The KC20 token standard has been officially launched.
Although its beta version faced technical issues, it was successfully relaunched with improvements such as a Telegram bot, which streamlined transactions. KC20 meme coins like Natur have seen significant gains, with some tokens experiencing 6x to 7x increases from minting prices. This suggests potential for more activity in the future, especially as the broader crypto market becomes more dynamic.
Read also: YouTuber Says Kaspa (KAS) Is âEasilyâ Top 5 Crypto â Hereâs Why
Factors Contributing to Kaspa Price Stagnation
One key reason for the sideways price movement is capital rotation. Money from Kaspa has been moving into KC20 tokens, creating an internal circulation within the Kaspa ecosystem rather than bringing in new funds. This has created bearish pressure on Kaspaâs price, contributing to its stagnation.
Additionally, market dynamics have shifted. Although Kaspa had a significant rally during the bear market (up 4,400%), it is now more closely following Bitcoinâs price movements, unlike in previous periods when it moved independently.
Future Outlook and Potential Catalysts
Looking ahead, there are several potential catalysts for Kaspa. A partnership with Change is expected to introduce a decentralized exchange (DEX) that will allow direct swaps between KC20 tokens. This could ease trading and create arbitrage opportunities, leading to more liquidity in the ecosystem.
On the exchange front, Kaspa is now available on Pionex for US traders, offering a fiat (USD) trading pair for the first time. This might help drive further adoption in the U.S. market.
Why is $KAS not running anymore?
â Conor Kenny (@conorfkenny) October 13, 2024
In the short term, Kaspa is expected to stay in its current range, as capital continues to rotate into KC20 tokens. However, Q4 could bring more market action. Long-term, as more users from other meme coin projects join the Kaspa ecosystem, thereâs potential for upward movement. The introduction of the new DEX should also help reduce selling pressure.
From a technical analysis perspective, Kaspa is in a strong support zone and is expected to move up from here. Some analysts predict Kaspa could reach a price target of $1, with a longer-term potential of $2 to $3, though these estimates remain conservative.
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