## Kaspa’s Market Dynamics: High Dormancy and Strategic Short Positions
**June 9, 2025**
In the ever-evolving landscape of cryptocurrencies, Kaspa (KAS) showcases an intriguing market behavior, as reported by various crypto analysis platforms. Here’s a breakdown of what’s currently influencing Kaspa’s market:
### A High Percentage of Dormant Supply
The recent phenomena in the Kaspa ecosystem indicate a significant holding pattern by its investors.
– **Dormant Supply Increases**: Recent analyses by *Crypto Insight Weekly* reveal that over **70%** of Kaspa’s circulating supply has remained untouched for over three months. This metric, which tracks unchanged wallets over a 90-day period, has seen a steady increase, with the percentage of dormant supply escalating from 59% in December 2024 to over 70% in June 2025.
– **Implications for Holders**: This dormancy suggests a strong belief in the long-term value of KAS among its holders, potentially reducing the immediate sell pressure as the market consolidates.
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### Whale Activity and Market Control
The accumulation of KAS by significant investors, commonly referred to as “whales,” adds another layer of complexity:
– **Whale Accumulation**: Between March and May of 2025, at least **nine new wallets** with over 10 million KAS each appeared, hinting at large investors quietly entering or expanding their positions.
– **Price Influence**: The presence of these whales could mean tighter market control, with their decisions potentially impacting market liquidity and price volatility.
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Quiet whale accumulation signals underlying strength in market confidence. #KAS #Crypto
— Crypto Insight Weekly (@WeeklyCrypto) June 9, 2025
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### Short Liquidation Looming
Kaspa’s market dynamics have put a spotlight on its derivatives market:
– **Short Positions Vulnerable**: Coinglass reports that approximately **$12 million** worth of short positions are concentrated just above the $0.09 price level. These positions, many with leverage up to 50x, could face liquidation should Kaspa’s price surge past this mark.
– **Liquidation Effects**: A price movement beyond $0.0901 could lead to significant liquidations, potentially fueling a sharp price increase due to the unwinding of these short positions.
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### Price Consolidation and Potential Breakout
Kaspa’s price chart shows a phase of consolidation:
– **Current Price Action**: After a notable pullback from its peak in May, Kaspa has stabilized between $0.083 and $0.087. This consolidation could be the calm before a potential price breakout.
– **Support and Resistance**: The price has found a temporary floor at **0.0825**, with resistance at **0.087**. A move above this resistance could accelerate the potential short squeeze.
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### Conclusion: The Market at a Critical Point
As Kaspa approaches key price thresholds, the market watches closely for any sign of a breakout or further consolidation. The combination of a high dormant supply, strategic whale accumulation, and the potential for a significant short squeeze sets the stage for possibly volatile price movements.
**Key Takeaways**:
– High dormant supply indicates strong holder conviction.
– Whale accumulation signals potential for market manipulation.
– A breakout above $0.09 could trigger a cascade of short liquidations.
Investors and traders are advised to stay informed as Kaspa navigates these complex market conditions.
**Read More**:
– [Market Analysis: Bitcoin’s Strong Support Levels](https://cryptoinfluencer.com/bitcoin-strong-support/)
– [Crypto News and Updates](https://cryptoinfluencer.com/category/crypto-news/)
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Source: captainaltcoin.com