Kaspa (KAS) is emerging as one of the top performers in the cryptocurrency market this year, with its price increasing by over 63% year-to-date.
In the last 24 hours, KAS has gained 5% to trade at $0.18 at 03:10 a.m. EST. The token now sits at a seven-day gain of 13%.
KAS created a fresh all-time high of $0.197 on June 30, 2024, as the market sentiment towards the token turned bullish. The gains came after news that one of the largest Bitcoin miners, Marathon Digital, would start mining $KAS tokens to diversify from Bitcoin.
The token is now down by around 8% from these record-high levels, but if the current bullish sentiment continues, more gains could be inbound.
Analyst Predicts Kaspa Rally to $5
According to crypto market analyst @rovercrc on X, KAS has much bullish potential, and it could rally to the $5 price level and shatter previous records.
In a recent post, the analyst noted that KAS had solid fundamentals that could drive the price action. Furthermore, the token had more potential than other cryptocurrencies, such as Cardano (ADA).
“ADA reached $80 billion in market cap last cycle. A coin with great fundamentals like $KAS will surely overtake that valuation. $5 is an easy target for Kaspa,” the analyst said.
As per the analyst’s projections, KAS could overtake ADA and become among the largest cryptocurrencies by market capitalization. KAS has a market cap of $4 billion, notably lower than ADA’s market cap of over $15 billion.
Besides the price growth, the Kaspa network is also seeing a notable rise in usage and adoption. The total number of addresses on the network has surged towards the 400,000 mark, indicating that the blockchain is also on a growth trajectory.
The growth of the network could contribute further to the price action. It could also trigger gains to fresh record highs and a parabolic rally to the $5 mark.
Kaspa Price Analysis
A look at the $KAS price action since the start of the month has seen the token bounce from a key support level at $0.14 and past $0.18.
This bullish price movement comes amid a rise in the buying pressure. The token has a Relative Strength Index (RSI) of 68, as shown below. This shows that a bullish momentum is in play and behind the price increase.
The RSI line briefly reached the overbought region before reversing, showing activity by some profit takers to take advantage of the price gains and reap gains.
The Bollinger bands further confirm that a bullish thesis is in play. The price has touched the upper Bollinger band, confirming the bullish momentum. The bands are also expanding, hinting at rising volatility.
If the buyers remain in the market, $KAS will likely soar to all-time highs past $0.19.
