- Kaspa surged by 5.4% on the daily charts and 5.37% over the last seven days.
- The recovery is amidst reduced liquidation and increased buying interest.
Over the past month, the crypto market has experienced heightened volatility. The market fluctuations have affected altcoins the most, as they have declined in market cap by 60% from ATH.
Although Bitcoin [BTC] has also witnessed a sustained decline, it has tried to recover and remain on average above $60k.
Momo, a crypto analyst, noted this altcoin trend, stating that,
“Not just Solana, but the broader crypto market is showing similar signs of uncertainty. The recent rallies in Bitcoin and Ethereum haven’t generated the expected momentum. Many altcoins are struggling for stability as market sentiment remains cautious.”
Since the recent market crash, most altcoins have struggled to recover and report sustained gains. However, after nearly two weeks of decline, KAS has reported significant uptrends.
KAS recovers from the downturn
Two weeks ago, KAS was attempting to hit a new ATH high after recording an all-time high of $0.20. However, the market crash and preceding market downturn hit Kaspa hard, pushing it to a long decline.
After the market crash, KAS declined from a high of $0.183 to a low of $0.125. Since the crash, KAS has now recovered by 5.37% over the last seven days.
Equally, the market cap has reported significant gains by 4.06% to $4.1 billion.
Although it is a gain, on market cap, it’s a decline from an all-time high of $5 billion that it hit two weeks ago. Despite that decline, it’s a notable recovery from the crash that pushed its market cap below $4 billion.
What price charts suggest
As of this writing, KAS was trading at $0.170 after a 5.4% increase on daily charts. However, the trading volume has declined by 11% to $89 million.
Essentially, AMBCrypto’s analysis of Kaspa’s price action showed that the altcoin was experiencing strong upward movements.
Source: TradingView
The Advance Decline Ratio (ADR) was above 1 at 3.57 at press time, suggesting recent highs were greater than lows. This suggested that the market was positive, which shows strength in the market.
A sustained positive ADR showed a strong upward, thus indicating increased buying interest.
Equally, the Relative Strength Index has increased from a low of 35 over the past seven days to 48 at press time.
This showed rising buying interest as the demand started to outweigh the selling pressure, which has overwhelmed the altcoin over the past two weeks.
Source: Coinglass
Looking further, AMBCrypto’s analysis of Coinglass showed long position liquidation has declined over the past week. Liquidation for long positions has declined from $2 million to $592 at press time.
The declined liquidation showed that investors were paying premiums to hold their positions, and those betting against the market are out of money.
Source: Coinglass
Finally, KAS has enjoyed a sustained increase in Open Interest over the past week. The altcoin’s Open Interest has increased from $50 million to $61 97 over the past week.
Thus, investors were holding their positions while opening new ones.
Read Kaspa’s [KAS] Price Prediction 2024-25
KAS is strongly recovering from the recent market downturn with increased buying interest. If the current trend holds, Kaspa will attempt the previous resistance level around $0.185 and $0.195.
However, a market correction will cause Kaspa to decline to $0.161.
