Kaspa (KAS) Shows Signs of Recovery Amid Liquidity Shifts
Kaspa (KAS), the intriguing cryptocurrency, has recently captured the attention of investors and traders due to dynamic movements in its liquidity and price dynamics. Currently trading at around $0.085, KAS experienced a turbulent month with significant price volatility. However, the spotlight now is on the liquidity build-up around the $0.12 mark, hinting at potential price recovery.
Liquidity Build-Up Signals a Price Reversal
According to Kaspa Daily on X, a considerable cluster of liquidity is forming between $0.12 and $0.125. This area, often described as a magnet for price action, could potentially pull the price of Kaspa back up. The recent activity shows that Kaspa’s price dipped low enough to trigger stop-losses, effectively sweeping out less committed investors or “weak hands” from the market. Such a move is typically a precursor to either a significant price reversal or a period of consolidation.
Kaspa just swept downside liquidity, shaking out weak hands, but the biggest liquidity cluster is now building around $0.12–$0.125.
This zone could act as a magnet, drawing price back up as liquidity naturally attracts price action.
Volatility remains high, but this level… pic.twitter.com/iYMPzFkRZ2— Kaspa Daily (@DailyKaspa) May 31, 2025
Whale Activity and Market Sentiment
An insightful move by a major whale wallet further stirs hope among the investor community. The second-largest KAS wallet added 16 million tokens to its stash from exchanges like Gate.io and Bybit, increasing its holdings significantly from May 17 to May 31. This buying spree, especially during a low price dip, suggests a belief in the long-term value of Kaspa, potentially reducing sell pressure in the short term.
Whale Wallet #2 Adds 16M $KAS on Dip
After weeks of silence, the second-largest Kaspa wallet has just accumulated 16 million more KAS, taking advantage of the recent price dip.
This time, the funds were sourced from both Gate. io and Bybit, indicating strategic accumulation… pic.twitter.com/iB8UIfm3sH
— Kaspa Daily (@DailyKaspa) May 31, 2025
Exchange Balances and Market Trends
Despite an increase in MEXC’s KAS balance by over 35 million tokens, the broader trend indicates a reduction in total exchange holdings. This suggests a move towards self-custody, potentially signaling a decrease in available sell volume in the near term.
In the past two weeks, MEXC’s Kaspa balance increased by over 35 million KAS.
However, the broader trend remains intact, total exchange holdings continue to decline, signaling that more users are opting for self-custody and long-term holding. pic.twitter.com/ClotfHnKly
— Kaspa Daily (@DailyKaspa) May 31, 2025
Analysis and Future Expectations
The current short-term trend for Kaspa remains bearish with a series of lower highs and lows. The immediate support at $0.085 – $0.09 will play a crucial role in determining whether Kaspa’s price will stabilize or face further downturns. Meanwhile, the evolving on-chain signals, including the significant liquidity cluster around $0.12, suggest that there might be some bullish undertones amidst the volatility.
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Source: captainaltcoin.com