- KAS recently set a record: more than 538,000 addresses now have the property
- However, this milestone has had little to no impact on the crypto asset’s price performance
Kaspa [KAS] has underperformed recently, especially after a market-wide correction. In fact, the asset fell 21.92% over the past month and further analysis suggested the decline may not be over yet. At the time of writing, projections indicated that KAS could experience a more significant drop in the charts.
Some projections even go so far as to predict a potential price crash of 93% if a crucial support level is breached.
New milestone – KAS holders reach record high
The number of addresses with KAS has soared in the last 24 hours, with figures for the same reaching a new record.
Data from Kaspalytics shows that 538,030 addresses now contain at least 1 KAS. Typically, such growth indicates that traders are accumulating the assets, which is often a precursor to price increases. However, it is worth noting that despite this milestone, KAS has seen a small price drop of 0.47% over the past 24 hours.
Source: Kaspalytics
A broader analysis of the price action indicated that a bearish trend may still be in store, with further declines dependent on the asset’s ability to hold a critical support level.
KAS faces a potential decline of 93%?
At the time of writing, KAS looked poised for a significant price drop as the chart showed a classic head-and-shoulders pattern. Especially now that the price is approaching the neckline.
The neckline appeared to act as a critical support level, preventing a sharper decline. However, if this level is exceeded, KAS could experience a steep freefall in the charts.
Source: TradingView
Based on TradingView price data, the expected decline could be as high as approximately 93%, potentially dropping the asset’s value to $0.00795. AMBCrypto’s analysis of technical indicators supported this outlook and confirmed that the market may be bearish and the downtrend could eventually materialize.
Bearish trend confirmed for KAS
Key market indicators, the Average Directional Index (ADI) and Bull Bear Power (BBP), confirmed the bearish outlook for KAS.
The ADI, which measures the strength of a market trend, indicated that the downward direction may be gaining strength. A rising ADI reflects stronger trend alignment. At the time of writing, the ADI stood at 27.61. If this trajectory continues, the KAS will likely continue to decline in value on the charts.
Source: TradingView
Meanwhile, the BBP, which determines whether buyers or sellers dominate the market, showed that sellers are firmly in control. Finally, the bear momentum bars remained in the red and continued to move south, reinforcing the bearish sentiment in the Kaspa market.