The on-chain price performance analysis of Kaspa (KAS) indicates that traders continue to show strong demand for altcoins.
At the moment, the Relative Strength Index (RSI) of Kaspa is around 53 and trending upwards. RSI, a momentum oscillator, measures the conditions of overbought and oversold of an asset on a scale from 0 to 100. Values above 70 suggest the asset is overbought and may undergo a correction, while values below 30 indicate it is oversold and may rebound.
With an RSI of 53, Kaspa is experiencing buying pressure from market participants. This shows that the recent price increase is supported by real demand, which is crucial to sustaining the rally.
After reaching an all-time high recently, many futures market traders started opening short positions, as indicated by the registered negative funding rate of -0.0085%. The funding rate in perpetual futures contracts is used to keep the contract price close to the spot price. A negative result implies a higher demand for short positions, suggesting that more traders expect the asset’s price to decline.
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A top analyst shared his predictions on the Bitcoin and altcoin markets. When the price of Kaspa corrects from its peak, it leads to the liquidation of many long positions. On June 30, the value of liquidated long positions reached $586,220, marking the highest single-day liquidation since March 16. The sharp increase in liquidations of long positions suggests that many traders who bet on a continued price rally were forced to exit their positions when the price unexpectedly dropped. This market reaction highlights the volatility of Kaspa and emphasizes the risks associated with altcoin trading.
Overall, the chain evaluation shows that despite the recent price correction and liquidation of long positions, Kaspa continues to attract significant interest from traders. At the time of writing, the cryptocurrency is trading at $0.018, reflecting an 8% decrease over the last 24 hours. However, during the same period, trading volume has increased by over 40%.
