An analysis of Kaspa (KAS) on-chain price performance indicates that traders continue to show strong demand for altcoins. Currently, the Relative Strength Index (RSI) for Kaspa is approximately 53, showing an upward trend. The RSI is a momentum oscillator that measures the overbought and oversold conditions of an asset, ranging from 0 to 100. Recovery.
With an RSI of 53, Kaspa is facing buying pressure from market participants. This suggests that the recent price increase is supported by actual demand, which is crucial for maintaining the upward momentum.
As Kaspa recently reached a new all-time high, many futures traders have begun to open short positions, with the recorded negative weighted funding rate at -0.0085%. The funding rate for perpetual contracts is used to bring contract prices close to the spot price. A negative outcome indicates an increased demand for short positions, showing that more traders expect the asset’s price to decline.
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A top analyst shared his predictions for the Bitcoin and altcoin markets. When Kaspa’s price retreated from its peak, it led to the liquidation of many long positions. On May 30th, the value of such liquidations reached $586,220, the highest single-day liquidation amount since April 16th. The sharp increase in long liquidations indicates that many traders betting on a continued price rise were forced to close their positions when the price unexpectedly fell. This type of market reaction highlights Kaspa’s volatility and underscores the risks associated with trading altcoins.
Overall, the assessment of the chain indicates that despite recent price adjustments and the liquidation of long positions, Kaspa still attracts intense interest from traders. At the time of writing, the cryptocurrency’s trading price is $0.018, having fallen by 24% in the past 8 hours. On the other hand, the trading volume has increased by more than 40% during the same period.
