The post KAS supply hits record high – Examining the odds of a 10% decline in price appeared on BitcoinEthereumNews.com.

KAS supply on exchanges climbed to a record high, while transaction counts slid lower. Altcoin’s support level will determine the next price move for KAS Over the last 24 hours, Kaspa [KAS] has gained by 2.72% on the charts, with the altcoin trading at $0.1322. However, market sentiment seemed to suggest it could begin dropping soon, extending its previous week’s losses of 10.94%. In fact, this bearish sentiment has been driven by unfavorable KAS fundamentals. Especially as market participants continue to lose interest in the crypto asset. Growing supply threatens KAS growth There has been a surge in the available supply of KAS across cryptocurrency exchanges, according to Kaspalytics. In the last 24 hours alone, the circulating supply of KAS hit a record high of 25.62 billion KAS available on exchanges. A growing circulating supply on exchanges could lead to a demand squeeze. A demand squeeze occurs when the supply of an asset isn’t met with adequate demand, or even faces lower demand, causing the asset to decline. Source: Kaspalytics As the KAS supply grew, there has been a reduction in the number of transactions occurring within the same timeframe. Also, the accepted transaction count—successful transactions—dropped from 212,920 to 50,520 on normal exchanges. This represented a 76.13% decline – Indicating a potential price drop. Normal exchanges in this scenario include all cryptocurrency exchanges, except Coinbase. A massive drop in transaction counts across these exchanges revealed that the market is starting to lose interest in KAS. This could result in a major downside for its price. A 10% drop may be on the horizon Right now, KAS is at a major crossroads on the chart, with the altcoin trading sluggishly above its support level at $0.1276. Typically, support levels act as catalysts for a major price pump to the upside. However,…

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Filed under: News - @ January 25, 2025 6:23 am