- KAS recently set a record, with over 538,000 addresses now holding the asset
- However, this milestone has had little to no impact on the crypto asset’s price performance
Kaspa [KAS] has underperformed lately, particularly following a market-wide correction. In fact, the asset dropped by 21.92% over the past month and further analysis suggested the decline may not be over yet. At press time, projections indicated that KAS could see a more significant drop on the charts.
Some projections even go as far as predicting a potential 93% price crash, if a critical support level is breached.
New milestone – KAS holders hit record high
The number of addresses holding KAS has surged over the last 24 hours, with figures for the same hitting a new record.
Data from Kaspalytics revealed that 538,030 addresses now hold at least 1 KAS. Typically, such growth suggests traders are accumulating the asset, often a precursor to price hikes. Worth noting, however, that despite this milestone, KAS has seen a minor price dip of 0.47% over the last 24 hours.
Source: Kaspalytics
A broader analysis of its price action indicated that a bearish trend may still be on the horizon, with further declines contingent on the asset’s ability to hold a critical support level.
KAS to face potential 93% decline?
At the time of writing, KAS appeared ready for a significant price drop as its chart revealed a classic head-and-shoulders pattern. Especially with the price approaching the neckline.
The neckline seemed to act as a critical support level, preventing a sharper decline. However, if this level is breached, KAS could see a steep free fall on the charts.
Source: TradingView
Using TradingView’s price range data, the projected drop can be as steep as approximately 93%, potentially bringing the asset’s value down to $0.00795. AMBCrypto’s analysis of technical indicators supported this outlook, confirming that the market may be leaning bearish and the downtrend may eventually materialize.
Bearish trend confirmed for KAS
Key market indicators, the Average Directional Index (ADI) and Bull Bear Power (BBP), confirmed a bearish outlook for KAS.
The ADI, which measures the strength of a market trend, indicated that the downward direction may be gaining momentum. A rising ADI reflects stronger trend alignment. At press time, the ADI had a reading of 27.61 If this trajectory continues, KAS is likely to depreciate further on the charts.
Source: TradingView
Meanwhile, the BBP, which identifies whether buyers or sellers dominate the market, showed sellers being firmly in control. Finally, the bear momentum bars remained in the red and continued to trend south, reinforcing the bearish sentiment in Kaspa’s market.
