Kaspa (KAS) is under pressure as broader crypto weakness pins the token near $0.03 — down roughly 22% over the past month and more than 64% from its May 2025 peak above $0.13. Friday’s market action, which saw Bitcoin retest lows around $65,600 and Ethereum slip toward $1,900, pushed most altcoins lower and left KAS trading in an extended downtrend.
Why bulls still have a case
Despite the slide, several on-chain and protocol-level catalysts give Kaspa bulls reason for optimism. Key positives include:
- Network activity: Kaspa Explorer data shows total transactions have passed 604 million, a milestone observers say demonstrates BlockDAG’s real-world throughput and sub-second confirmation capabilities.
- Upcoming hard fork: A pivotal hard fork expected in May will introduce programmable covenants, native assets (KRC20 tokens) and SilverScript to simplify Layer‑1 development — all changes that could broaden use cases and developer interest.
- Supply dynamics: Nearly 95% of Kaspa’s 28.7 billion max supply is already mined; reaching the cap would further reduce new-coin emissions, a bullish factor if demand returns.
Technical picture — tug of war between buyers and sellers
Price action suggests a battle for control. KAS has been trending lower since late 2025 and tested lows near $0.028 in February. On the daily chart the falling 50-day and 100-day simple moving averages form a clear supply zone, where bulls have repeatedly met resistance.
Key levels to watch:
- Immediate support: $0.03 — holding this level is critical for bulls. A break below could open a path toward stronger downside, with $0.025 cited as possible next support.
- Near-term resistance: 50‑ and 100‑day SMAs at roughly $0.036 and $0.041.
- Bullish breakout zone: $0.050–$0.055 — clearing this area, previously a supply wall, could pave the way to $0.10 or higher. Notably, KAS climbed near $0.05 in mid‑December 2025 amid excitement around a listing on HTX.
Bottom line
Kaspa’s fundamentals — rising transactions, a feature-packed hard fork and tightening supply — give buyers potential leverage if market sentiment improves. But until KAS can clear its moving‑average resistance and crypto markets stabilize, downside risk remains real. Traders will be watching $0.03 closely as the line between a recovery and a deeper pullback.
Read more AI-generated news on: undefined/news
