The Kaspa (KAS) token experienced a dramatic price increase of nearly 60% over five days, sparking investor curiosity about whether the move was driven by fleeting excitement or deeper market forces. Analysis from Kas Lens on X reveals that the surge is structurally rooted in thin sell-side liquidity, particularly on Gate.io, the exchange with the highest KAS trading volume. Orderbook data shows that even after a 50% price jump, spot activity remains moderate, with small buy orders capable of consuming entire ask levels and pushing prices higher rapidly due to fragile liquidity conditions.
Kas Lens highlighted that large market participants have been accumulating KAS for months, steadily reducing the circulating supply. Metrics indicate a significant portion of KAS has remained unmoved for over two years, indicating strong holder conviction and limiting sell-side pressure. This accumulation, combined with listings on platforms like CoinMarketCap and CoinGecko, has drawn new attention, leading to bursts of buying activity from newcomers.
Concurrently, Kaspa Builders reported that eight whale wallets bought over 35 million KAS tokens during recent dips, reinforcing confidence and contributing to a breakout from a multi-month descending trendline. Technical analysis confirms a bullish reversal, with KAS trading above key moving averages and futures open interest surging 25% to $79.2 million. The long-short ratio exceeding 1 signals growing bullish sentiment, with price targets suggesting a potential 55% upside to $0.092 if the trend holds, while $0.051 serves as a critical support level.
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