- KAS recently set a record, with over 538,000 addresses now holding the asset
- However, this step had little to no impact on the price performance of the crypto asset.
Kaspa (KAS) has underperformed recently, particularly following a market-wide correction. In fact, the asset has fallen 21.92% over the past month and further analysis suggests the decline may not be over yet. At press time, projections indicated that KAS could see a more significant drop in the charts.
Some projections even go so far as to predict a potential price collapse of 93%, if a critical support level is breached.
New milestone – KAS holders reach record high
The number of addresses holding KAS has increased over the past 24 hours, and the corresponding numbers have reached a new record.
Data from Kaspalytics revealed that 538,030 addresses now hold at least 1 KAS. Typically, such growth suggests that traders are accumulating the asset, which is often a harbinger of rising prices. It is worth noting, however, that despite this milestone, KAS saw a slight price drop of 0.47% over the past 24 hours.
Source: Kaspalytics
A broader analysis of price action indicated that a downtrend could still be on the horizon, with further declines dependent on the asset’s ability to maintain a critical support level.
Will KAS face a potential 93% drop?
At the time of writing, KAS appeared poised for a significant price decline, with its chart revealing a classic head and shoulders pattern. Especially with the price approaching the neckline.
The neckline appears to act as a critical support level, preventing a further decline. However, if this level is breached, KAS could experience a sharp free fall on the charts.
Source: TradingView
Using TradingView’s price range data, the projected decline can reach around 93%, potentially bringing the asset’s value down to $0.00795. Analysis of technical indicators by AMBCrypto supported this outlook, confirming that the market could be bearish and that the downtrend could eventually materialize.
Bearish trend confirmed for KAS
Leading 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 downtrend could become more pronounced. A rising ADI reflects a stronger alignment of trends. At press time, the ADI showed 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 that sellers were firmly in control. Finally, the bearish momentum bars remained in the red and continued their southward trend, reinforcing the bearish sentiment in the Kaspa market.
