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Steve Muchoki
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Key Notes
- The Kaspa’s core developers have been working on crucial technical upgrades to enhance the network’s speed and scalability.
- KAS price has been trapped in a correction mode in the past six months, which could lead to a further selloff if the ongoing crypto rebound fails.
The mid-cap altcoin industry, led by Kaspa KAS $0.0755 24h volatility: 0.3% Market cap: $1.95 B Vol. 24h: $34.82 M , has gained significant bullish momentum as Bitcoin BTC $87 227 24h volatility: 0.3% Market cap: $1.73 T Vol. 24h: $24.65 B price rallied above $100k for the second time in 2025. The upcoming 2nd inauguration of pro-crypto US President-elect Donald Trump has rejuvenated bullish sentiment amid renewed interest from whale and institutional investors.
Furthermore, the highly anticipated altseason is about to happen in the coming months, fueled by clear crypto regulations in the United States. Already, Bitcoin dominance has formed a macro reversal pattern, which will kickstart the next much-anticipated altseason.
Kaspa Price Attempts Bullish Recovery
Kaspa (KAS), a mid-cap altcoin with a fully diluted valuation of about $3.8 billion and a 24-hour average trading volume of around $124 million, surged over 30 percent in the past three days to trade about 15 cents on Thursday, January 16, during the mid-New York session.
The altcoin rebounded from a crucial support level of around 10 cents in the last few weeks, signaling a potential bull run in the near term. However, the altcoin has experienced heightened diminished returns after registering palpable growth in the last two years.
Moreover, KAS price has rallied more than 879x since May 2022 and reached an all-time high of about 20 cents six months ago.
From a technical analysis standpoint, KAS price has been forming a potential reversal pattern, characterized by a head and shoulders (H&S) pattern coupled with a bearish divergence of the weekly Relative Strength Index (RSI).
If KAS price consistently closes below the support level of around 10 cents, the reversal pattern will be confirmed, with a midterm target of around $0.075.
However, KAS’s price could continue morphing into a complex bullish structure in the coming months, especially amid the anticipated altseason.
Fundamental Outlook
The Kaspa network has grown during the recent crypto bear market to a robust proof-of-work (PoW) secured blockchain. The team behind the Kaspa network has been working on different technical enhancements to enable faster and more scalable transactions for all users.
For instance, the upcoming Crescendo hard fork will increase Kaspa’s block rate from one per second to ten per second. As a result, the Kaspa network will manage to handle up to 150 million transactions per day, under heavy network congestion.
Additionally, the launch of KRC-2 tokens has significantly increased the Kaspa network’s on-chain activities from around 31k per day to peaks of between 1.35 million and 8.86 million per day.
In the near term, the Kaspa core developers intend to transition the network’s core from Go to Rust language to enhance the block rate.
In a bid to boost KAS liquidity and market outlook, the Kaspa Eco Foundation (KEF) appointed DWF Labs, a Dubai-based web3 firm, as the top market maker.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Managing Editor
Marco T. Lanz
