The Tightening Grip on Kaspa’s Supply

Kaspa (KAS) has recently shown signs of an unprecedented supply squeeze. With only 0.71% of its circulating supply moving in the past 24 hours, as per the latest data from Kaspa Monitor, the blockchain is witnessing its daily active supply at levels that are among the lowest ever recorded. This scarcity is creating a strong undercurrent for what might be an imminent price surge.

Historical Trends and Market Readiness

The trend of decreasing active supply has been consistent since early May, with holders showing increasing reluctance to sell their KAS. Market reports suggest that such reluctance often precedes significant market movements, setting the stage for potential bull runs when demand begins to surge.

Kaspa’s Unique Emission Schedule Fuelling Scarcity

Unlike other cryptocurrencies, Kaspa’s emission schedule is designed to enhance scarcity annually. While Bitcoin halves its block reward every four years, Kaspa’s model sees its block reward decrease yearly. This strategic difference not only accelerates scarcity but also supports Kaspa’s role as a fast, feeless medium of exchange due to its block-per-second DAG architecture.

Current Market Position and Predictions

The current trading price of Kaspa is hovering around $0.118, maintaining a position above the critical 200-day moving average of $0.110. After breaking through this resistance, Kaspa has been in a consolidation phase, with the Relative Strength Index (RSI) indicating neutral to slightly bullish momentum.

Potential Price Movements

• Upside Targets:
  • $0.130 – Immediate resistance.
  • $0.135 – Potential new peak.
• Downside Targets:
  • $0.105 – Short-term support level.
  • $0.098 – Strategic buy zone.

Technological Edge and Holder Sentiment

The underlying technology of Kaspa, with its unique features and growing community support, positions it as a leader in the space for smart contracts and decentralized applications. The low movement of the circulating supply, coupled with its technical robustness, provides a strong bullish case for KAS.

Kaspa’s resilience in maintaining low circulating supply movement suggests a brewing #SupplyShock. With reduced supply availability, and if demand increases, we’re looking at potential price spikes. pic.twitter.com/lkMEWYuriH

— Crypto Bites (@CryptoBiteTweets) May 31, 2025

What’s Next for KAS Investors?

Given the technical and on-chain indicators, the sentiment among analysts and investors points towards an upward trajectory for Kaspa. However, staying above the current support levels will be key to unlocking these higher targets.

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