Kaspa (KAS) Already Overvalued? Expert Warns $1 Not Yet Realistic – KAS Price Prediction

A cryptocurrency analyst broke down why Kaspa (KAS) might be significantly overvalued right now, pouring cold water on dreams of reaching the coveted $1 mark anytime soon.

A cryptocurrency analyst has poured cold water on dreams of Kaspa (KAS) reaching $1 by 2025, as the expert claims the token could be "significantly overvalued."

The analyst, who is the face behind the YouTube channel Crypto MindSet, is also placing a technical bear market on Kaspa for 2025.

What Is Kaspa And What Is It Known For?

Kaspa is a cryptocurrency that is focused on providing a high throughput blockchain. It uses the PayToInclude (P2I) model for mining, similar to Bitcoin, and aims to offer fast transaction speeds and low fees.

The cryptocurrency is also known for its unique block structure, which is designed to be more efficient than traditional blockchains. It is a PoW cryptocurrency.

Many crypto traders got to know Kaspa in 2022, as it was one of the best-performing cryptocurrencies last year. The token is still up 28,000% from its 2022 lows on a linear chart.

It’s 280x in terms of return, and it reached a 1,000% gain at its recent peak of around $0.20. But people get it all wrong when they expect Kaspa to go straight up to $5 or $10.

These moon-shot predictions on social media don’t align with market reality. I don’t think Kaspa will hit $1 in 2025.

The analyst is placing a technical bear market on Kaspa as it’s currently trading below both its 50-week moving average and its 200-day moving average. A death cross also formed back in October.

This technical signal typically confirms that a bear market is underway on a broader time frame, which aligns with the long-term chart.

Most Likely Scenario For Kaspa In 2025

"I’ll be placing a technical bear market on Kaspa for 2025. If we continue in the current trends, I think we could slide to around $0.03 by the end of 2025 before finally bottoming out and starting a fresh bull cycle."

"What really matters isn’t the specific price target, but finding the next accumulation range. That’s where smart money is made – buying during consolidation phases rather than chasing a down-trend or buying market tops."

"Patient investors who accumulate during sideways price action tend to reap the biggest rewards. But people are getting impatient and they want to see immediate gains, which isn’t how these markets usually work."

This isn’t your typical crypto top formation. What makes Kaspa particularly interesting is its unusual topping pattern.

We're still in February and Kaspa already formed a top over approximately 15 months, from November 2021 to February 2023. Having traded eight years in crypto markets, I can say this is one of the most beautiful but nastiest and longer tops I’ve ever witnessed in cryptocurrency.

Based on historical patterns and this extended topping phase, I'd estimate a minimum of one year of further downside or sideways action from this peak.

But we could even see this correction last for a greater period. I’ve been warning my followers about Kaspa’s downside risks for months.

I spotted several red flags that ultimately coincided with price declines, including the upcoming death cross, issues with the KRC token, and even the much-anticipated Kraken listing.

But despite my warnings, many viewers remained optimistic, placing price targets of $1 to $5 by 2025, which I personally see as significantly overvalued.

Now, let's consider a more bullish scenario. If Bitcoin manages to bottom out in 2025 and begin another bull run to new all-time highs, we might see Kaspa follow suit.

However, I see this possibility as less likely given the extended top formation we’ve just witnessed. Instead of focusing on specific price predictions, I'll be watching for a sustained sideways trading range.

This range could form between $0.01-$0.02, $0.03-$0.05, or at another level entirely. Once price action stabilizes into this pattern, that’s when I plan to start accumulating for a multi-year hold.

For traders seeking more immediate signals, we can look at a break above the 200-day moving average, which would suggest a potential bottom is forming. Only then would I begin to reconsider my bearish stance on Kaspa in 2025.

But until we see this technical breakout or a reversal in the broader market trends, I'm sticking with my bearish outlook. So, those $1 predictions might need to be put on ice for now.