Key Insights
- After a steady decline from its highs, Kaspa price hit a local low of around $0.06 recently. It has, since then, bounced nicely.
- The number of active addresses involved in transactions and transaction count in the last 7 days declined.
- Kaspa’s hash-rate value was 1.10 EH/s as its network difficulty read 1.08 E.
Kaspa price had seen a correction period approaching its fifth consecutive month. The price action showed some promise. However, some on-chain metrics contrasted with this outlook.
Kaspa Price Action and Prediction
Kaspa price showed volatility but established support at $0.06 during the downward movement. A purple-colored zone highlighted it. This potential local price bottom received attention, which led to a slight market recovery that could ignite a complete reversal.
The price rise occurred with increasing market volume. A change of character (ChoCh) and a break of structure (BOS) accompanied this.
After the price rebounded from the $0.06 area of interest, it signaled significant buying activity. This indicated potential strength recovery in KAS.
KAS faced an immediate obstacle at the $0.07 price zone where equal highs rested. However, the price reaching this level would be a 26% gain from prices as of press time.
The moving averages and price points acted as joint barrier resistances and supports. Price was above the fast-moving averages but below the long-term ones.
If the bullish recovery from $0.06 support maintained its momentum, KAS could break and stay above $0.07 effectively. This would point toward enduring bullish trends.
However, Kaspa would face more selling pressure if the altcoin failed to break and maintain trading above $0.07. This would push Kaspa price back to $0.06 support or into a lower position. As the market was bearish, more decline could be ruled out.
The bullish trend at $0.06 hinges on KAS overcoming the $0.07 resistance. If KAS achieves this, the trend may continue upward. The directional movements of KAS would be determined by the price behavior at the $0.06 and $0.07 zones.
Active Addresses and Transaction Count
However, Kaspa registered declining participation levels by network users for the past week. Despite its low impact, the metric cannot be overlooked.
The total active addresses participating in transactions showed deterioration. It reached 15.4K active addresses from the initial high of 16.2K.
The transaction volume plunged by 50%, reaching approximately 217K until it settled at 108K. A drop in KAS network activity suggested lower user interest.
In regular market declines, lower network activity metrics can heighten selling pressure. This happens as reduced user participation signals decreased asset demand.
The continued drop in active addresses and transaction count may suggest declining fundamentals. This could lead to further weakening in Kaspa price.
Kaspa Hashrate and Network Difficulty
The network hashrate of Kaspa also dropped to around 0.80 EH/S. However, it recovered to 1.10 EH/s while network difficulty remained at 1.08 E, a recovery from 800 P.
The hashrate declined, indicating potential inferior security for Kaspa miners. This could generate negative effects on investor confidence.
A strong hash rate performance alone cannot safeguard prices during prolonged negative market sentiment. This remains true even in correction phases.
The network difficulty tended to contrast the hash rate as the system automatically adjusted block creation times for consistent results. The network difficulty increases could be caused by additional miners joining the network, thus enhancing its security level.
Kaspa’s healthy network expansion might not directly boost its market price during widespread depreciation. Due to its mixed network fundamentals, Kaspa price could probably experience drops if the broader market declined further.
A stable hash rate and high-difficulty figures can strengthen Kaspa’s network. This stability offers better resistance when market sentiment improves.