Kaspa (KAS) Shows Signs of a Potential Price Surge

Recent on-chain data analyzed by Kaspa Daily indicates a notable decline in Kaspa (KAS) holdings on centralized exchanges during April. Key trading platforms like Gate.io and MEXC have witnessed significant outflows, with Gate.io alone losing approximately 110 million KAS and MEXC an additional 25 million KAS. This exodus of tokens from exchange wallets often suggests that holders are moving their assets to private wallets, a movement typically associated with accumulation intentions.

Implications of Reduced Exchange Balances

The reduction in KAS on exchanges points to a tightening supply, which fundamentally reduces the availability of Kaspa tokens for immediate trading. This scenario is likely to decrease selling pressure and could facilitate an upward movement in price, particularly as the demand for Kaspa increases. Data shared by Kaspa Daily shows that balance on exchanges has hit its lowest point since December, hinting at a brewing supply squeeze:

Kaspa On-Chain Analysis: Signs of a Supply Squeeze as Price Tests Key Support

Kaspa is showing a notable shift in market structure, driven by tightening supply and rising long-term holder confidence.

Exchange holdings have now dropped to their lowest levels since early… pic.twitter.com/Yqe8aUOzEx

— Kaspa Daily (@DailyKaspa) April 24, 2025

Additionally, over 67% of all KAS has remained dormant for over three months, a strong indicator of confidence among long-term investors. This trend towards holding rather than selling sets the stage for potential sharp price increases if buying pressure escalates.

Funding Rates Signal Bullish Sentiment

Another encouraging metric from Kaspa Daily is the positive funding rate of KAS across major exchanges. A positive funding rate implies that traders are willing to pay a premium to keep their positions open, which is a clear sign of market optimism and expectations of a price increase:

This sentiment shift is often a precursor to major price movements, indicating that market traders are leaning bullish.

Price Dynamics at Critical Levels

Kaspa is currently testing the $0.09 to $0.10 price barrier, a level that has historical significance as both a resistance and support zone. After a significant dip in March 2025, where KAS fell below this level, the coin’s recovery has brought it back to this now critical resistance:

The present monthly candle reflects substantial bullish momentum with a nearly 49% increase. Yet, the real test remains:

• Breaking above $0.10: A monthly close above this level could signify a strong break from past resistance, potentially leading KAS towards its all-time high between $0.18-$0.20.
• Failure to break above $0.10: If KAS cannot sustain above this price, a retreat to lower support levels around $0.06 or even $0.05 might occur.

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