Kaspa’s (KAS) market performance has seen significant turbulence in the past 24 hours.
The KAS price dropped by 4% on Wednesday, and its trading volume also declined by 10.44%. At the time of writing, the price stands at $0.1686.
Crypto analyst Jim, known as @Cryptographur on X, informed his 16.3k followers that the majority of the selling pressure came from short-term holders. According to him, these investors lack conviction, having held the asset for less than six months, and are selling out of fear.
In contrast, long-term holders who have maintained their positions for over six months are showing more confidence. These investors are in profit and are less likely to sell.
### Kaspa’s Short-Term Holders Contributing to Price Volatility
The chart shared by Jim highlights the percentage of KAS supply that hasn’t moved for over three months. It shows that as the price fluctuates, many short-term holders begin selling, likely due to fear of further losses.
Jim further explained that these investors have not held the asset long enough to see substantial gains, leading to panic selling when prices dip.
Image Source: X/Cryptographur
The chart shows a notable drop in the percentage of KAS held by short-term holders during early 2023, coinciding with a period of increased price volatility. This behavior has added to the fluctuations in KAS pricing.
### KAS Long-Term Holders Show Stronger Conviction
On the other hand, the chart tracking KAS supply that hasn’t moved for over six months indicates that long-term holders are maintaining their positions with confidence.
The percentage of supply held by these investors has steadily increased, surpassing 40%. This rise suggests that these holders, who have likely experienced profits, are not motivated to sell despite short-term price fluctuations.
Image Source: X/Cryptographur
According to Jim, these long-term investors are more resilient and see potential in Kaspa. Their confidence is reflected in the upward trend of both the supply held and the price of KAS, indicating stability from this group.
### Correlation Between Price Trends and Holding Patterns
The divergence in behavior between short-term and long-term holders is crucial for understanding Kaspa’s price movements.
As long-term holders accumulate and remain inactive, their stability reduces overall sell pressure. Meanwhile, fear-driven sell-offs from short-term holders create temporary volatility.
Both charts clearly illustrate this dynamic. While short-term holders sell in response to market dips, long-term holders provide a foundation of support, which could help Kaspa’s price continue on an upward trend over time.
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Source: captainaltcoin.com