KAS has recently set a new record, with over 538K addresses currently holding this asset.
However, this milestone has hardly had any impact on the price movements of this digital asset.
Kaspa [KAS] has underperformed recently, particularly after a market-wide correction. In fact, this asset has decreased by 21.92% in the past month and analysis suggests this decline may not yet be over.
At the time of reporting, predictions indicate that KAS may experience a significant decline on the chart.
Some predictions even mention the possibility of a price collapse of up to 93% if a key support level is surpassed.
New milestone - Number of KAS owners reaches a record high
The number of addresses holding KAS has surged in the past 24 hours, reaching a new record high.
Data from Kaspalytics shows that 538,030 addresses currently hold at least 1 KAS. Typically, this growth indicates that traders are accumulating assets, often a sign before a price increase.
However, it should be noted that, despite reaching this milestone, the price of KAS has decreased slightly by 0.47% in the past 24 hours.
Source: Kaspalytics
A broader analysis of its price action suggests that a downward trend may still lie ahead, with further declines depending on the asset's ability to hold at key support levels.
Is KAS likely to drop by 93%?
At the time of writing, KAS appears to be poised for a significant price drop as its chart displays a classic head and shoulders pattern. Especially as the price approaches the neckline.
The neckline seems to act as an important support level, preventing further declines. However, if this level is surpassed, KAS could witness a sharp slide on the chart.
Source: TradingView
Using TradingView's price range data, the expected drop could reach around 93%, potentially bringing the asset's value down to $0.00795.
TinTucBitcoin's analysis of technical indicators also supports this view, confirming that the market may be leaning towards a downward trend and that a bearish trend may become a reality.
Confirm the downward trend for KAS
Key market indicators, the Average Directional Index (ADI) and Bull Bear Power (BBP), have confirmed a bearish outlook for KAS.
ADI, an index measuring the strength of market trends, has indicated that the bearish trend may be gaining momentum. A rising ADI reflects stronger synchronization of the trend.
At the time of reporting, the ADI was at 27.61. If this momentum continues, KAS is likely to decline further on the chart.
Source: TradingView
Meanwhile, the BBP, an index that indicates whether buyers or sellers are dominating the market, has shown that sellers are definitely in control.
Finally, the bearish momentum bars remain in the red and continue the downward trend, reinforcing the bearish sentiment in the Kaspa market.
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