Kaspa has been trading sideways and is currently at range lows, even though the broader market looks strong and the news for Kaspa has been positive.
Kaspa (KAS) has been trading sideways recently, despite the broader market showing strength and news for Kaspa being positive. This has left some traders wondering why KAS is not running anymore.
One key reason for the sideways price movement is capital rotation. Money from Kaspa has been moving into KC20 tokens, creating an internal circulation within the Kaspa ecosystem rather than bringing in new funds. This has created bearish pressure on Kaspa’s price, contributing to its stagnation.
Additionally, market dynamics have shifted. Although Kaspa had a significant rally during the bear market (up 4,400%), it is now more closely following Bitcoin’s price movements, unlike in previous periods when it moved independently.
However, several potential catalysts could boost Kaspa's price in the future. A partnership with Change will introduce a decentralized exchange (DEX) for direct swaps between KC20 tokens. This could ease trading and create arbitrage opportunities, leading to more liquidity in the ecosystem.
On the exchange front, Pionex now offers a fiat (USD) trading pair for the first time, which might help drive further adoption in the U.S. market.
Overall, while Kaspa is not running like before, it is still in a strong support zone and is expected to move up from here. Some analysts predict Kaspa could reach a price target of $1, with a longer-term potential of $2 to $3.
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