Kaspa (KAS) increased by 12% in the last 24 hours, despite a significant decline in network activity. Over the past week, the asset also showed a 23% growth, but data indicates a weakening of activity and liquidity, which may lead to a short-term decline of the asset. The number of unique Daily Active Users (DAU) on the network has significantly dropped from 36,570 to approximately 7,910, representing a 78% decrease over the week. The number of transactions also fell, decreasing from around 208,480 to 113,530 in the last 24 hours, which means a reduction of more than 94,000 transactions during this period. Meanwhile, transactions through Coinbase for Kaspa remained nearly stable, indicating that American investors still maintain a positive outlook.
Analysis of KAS using the Liquidation Heatmap warns of a potential decline of the asset based on liquid clusters. These clusters represent zones on the chart where orders are located, including buy orders below the price and sell orders above. At the time of writing, the nearest cluster with the greatest depth is at $0.038, which could serve as a support level in case of a trend reversal. So far, with the ongoing bullish movement, the likelihood of a drop to this zone remains low.
Despite the weakening network activity, several factors contributed to the price increase of the asset. One of the key factors is sentiment, which currently stands at 4.81 on a scale from -10 to 10, suggesting that bullish momentum may continue. Additionally, the perpetual contracts market is positively influenced by the Funding Rate and Open Interest remaining in a positive zone. Thus, KAS rose by 12% in 24 hours, but the decline in the number of active users and transactions indicates a weakening of network activity. Strong sentiment and bullish positions in the derivatives markets continue to support KAS, although liquid clusters leave room for a pullback to the $0.038 level.
Related articles
