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The cryptocurrency market is always full of surprises, and Kaspa (KAS) is no exception. In a recent video, an expert from Freeman Finance and Crypto provided an in-depth analysis of Kaspa’s market performance, technical hurdles, and its potential for future growth.
Despite a recent price drop, the analyst expressed confidence in the project, emphasizing its strong foundation and unique position within the market.
Challenges Currently Facing Kaspa
Recent market trends for Kaspa have raised concerns among investors. The analyst highlighted a 30% price decline over the past month, with the token trading within the $0.10 to $0.12 range.
While earlier predictions of Kaspa reaching a $1 valuation have yet to materialize, some investors are questioning the project’s growth potential. The market capitalization remains under $3 billion, which the expert identified as a possible limiting factor for further expansion.
The analyst also pointed out bearish patterns in Kaspa’s price chart, noting the formation of a potential Head and Shoulders pattern, which could signal additional downside risks. Key support levels were identified at $0.10, $0.07, and $0.05, with further declines possible if bearish momentum persists.
Additionally, the expert observed that Kaspa’s correlation with Bitcoin has weakened, despite earlier expectations that it might follow a similar trajectory based on Bitcoin’s “rainbow chart.”
Reasons for Optimism
Despite short-term challenges, the analyst remains optimistic about Kaspa’s long-term potential. One key factor is the token’s supply and demand dynamics. With over 88% of Kaspa tokens already mined, limited future supply could drive prices higher as demand increases.
Another positive indicator is the growing network hash rate, which has reached 1.35 xH/s. This increase reflects rising miner investment and improved network security. The analyst commented, “More power to the network signals resilience and strength.”
Technical Developments and Future Outlook
Kaspa’s ongoing advancements in smart contract capabilities are another source of optimism. The project is working on implementing layer-1 DeFi and scalable applications, along with a scalability upgrade that will enable 10 blocks per second. The analyst praised these developments, describing Kaspa as “the ultimate layer one.”
Drawing comparisons to Sui, the expert suggested that Kaspa could experience a parabolic rise. They projected a potential market capitalization increase to $15 billion, depending on broader market conditions.
Read also: XRP and Cardano Show Growth, But This Altcoin Is Losing Holders
Focusing on Fundamentals
While Kaspa’s price has faced challenges, the analyst encouraged investors to focus on the project’s strong fundamentals. They emphasized that Kaspa remains a leading proof-of-work blockchain with significant development progress.
“Nothing has changed about the project,” the analyst concluded, urging viewers to”
Source: captainaltcoin.com