Highlights:
The cryptocurrency market is showing signs of a possible rebound. This is most evident in the fact that Bitcoin is grinding higher since hitting a low of $82k. The rebound, though slow, is pushing momentum into the altcoin market. One of the big beneficiaries of the broader market rebound is Kaspa (KAS). In the last 24 hours, Kaspa has gained by 25.22% to trade at $0.051.
A surge has also followed the rally in trading volumes. Kaspa’s intraday volumes are up by 138.31% to stand at $99.1 million. The rise in trading volumes alongside a rising price is an indicator that FOMO is building up. As such, there is a good chance that Kaspa could rise significantly from its current level. There are a couple of solid factors why the intraday price rally is only the beginning of a Kaspa rally.
The first is that Kaspa has proven itself to have high throughput, which is critical for long-term adoption. Recent data indicate that on November 5, the Kaspa network processed 158 million transactions within 24 hours. This was made possible by a recent upgrade that utilizes the Rust programming language. It also demonstrates that Kaspa’s use of BlockDAG technology is futuristic and could make Kaspa one of the best scaling networks for the future.
With cryptocurrencies now going mainstream both as an investment and for everyday payments, Kaspa’s scalability could put it among the most adopted. This is helping draw in long-term investors to Kaspa at a time when the broader market appears to be turning a corner after a correction. A confirmed broader market rebound at a time when Kaspa is showing its capabilities could send KAS on a parabolic bull rally.
Kaspa is also exciting the market with its increased push towards more decentralization. The recent issues that Monero has faced with a possible 51% attack show that cryptocurrencies are always vulnerable to such attacks. Kaspa has excited the market after it recently announced that it is currently approaching 1000 nodes.
This is a big deal given that Bitcoin, the most decentralized financial network, has around 23k nodes. As such, with 1000 nodes and growing, Kaspa stands out as one of the most decentralized cryptocurrencies today. The market interprets this as a sign of security and could trigger a KAS rally that sends it to new highs in the foreseeable future.
Kaspa is also attracting investor attention due to its technical setup. Multiple analysts believe that Kaspa is oversold, given that it is currently trading below the 50-day and 100-day moving averages. This gives it the potential for a rebound, especially because it is still holding above the 20-day moving average.
This perception that Kaspa is oversold is coming at a time when Bitcoin also appears to have bottomed out and is making a turnaround. As such, investors looking to capitalize on the market rebound could continue to bet on Kaspa. The result is that the KAS could rally to new highs in the short to medium term.
Kaspa is currently making higher lows in a bullish channel. This points to all dips being bought up fast. If this momentum continues, the key level to watch will be the intraday high of $0.053.
Source: TradingView
A rally through $0.053 could see Kaspa hit prices as high as $0.07 in the short to medium term. On the other hand, if bulls fail at the $0.0.53 high, then a correction to the $0.044 support could follow. Given that the broader market is in a rebound, a rally to $0.07 is more likely.
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