Kaspa (KAS) may soon witness a price rally, according to an analysis shared by ApexTrader (@ApexTrader0). The detailed assessment highlights a combination of market dynamics, technical signals, and on-chain factors pointing toward bullish momentum
KAS Spot Market Activity Indicates Accumulation
The spot market activity around Kaspa reveals a positive bid-ask delta, suggesting buyers are actively accumulating the asset. This metric shows consistent injection of capital into the market, often observed near strong daily support zones. Such areas traditionally attract institutional and large-scale traders looking to secure positions.
BIG $KAS UPDATE Fundamental analysis 1. Positive Spot Bid-Ask Delta as the Foundation for the Bullish Thesis:•The spot market represents the “real” demand for Kaspa. A positive spot delta shows that buyers are consistently injecting real capital to accumulate the coin.… pic.twitter.com/cIbWrcNeiW
— ApexTrader (@ApexTrader0) December 26, 2024
On the futures side, the analysis notes a negative cumulative volume delta (CVD). This indicates an accumulation of short positions, setting the stage for a potential short squeeze. If triggered, the unwinding of these positions could amplify upward price momentum as short sellers are forced to cover losses.
Low Funding Rate and High Open Interest Create Upward Potential
The funding rate for KAS remains low, signaling that long positions are neither over-leveraged nor overheated. This leaves room for additional upward movement without the risk of immediate corrections. Concurrently, the high open interest in the market points to growing participation and anticipation of a substantial price move.
According to the tweet, liquidation heatmaps on platforms like Binance and Bybit further reinforce the bullish outlook. Large clusters of liquidations are concentrated above the current price levels, acting as potential targets for upward price movement. The combination of these factors suggests a favorable environment for bullish action.
Read also: Expert Maps Stellar (XLM) Price Path to $1, But There’s a Catch
Technical Support and Volume Analysis
Kaspa’s technical analysis highlights its proximity to a key daily support zone.
Historically, these zones have served as pivotal areas where institutional traders build long positions. The tweet also notes a recent slowdown in the downtrend, with Kaspa trading in a range between $0.10 and $0.20 since the start of 2024. At press time, KAS trades at $0.117828, showing an increase of 3.09% in the last day.
Volume profile analysis reveals a point of control around $0.15. This range has seen rapid price recoveries in the past, suggesting it could serve as a launchpad for future bullish moves. Furthermore, Kaspa’s functional network and increasing adoption continue to support its long-term prospects.
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The post Here’s Why the Kaspa (KAS) Price Could Rally Soon appeared first on CaptainAltcoin.
