- Kaspa (KAS) has gained 1000% in 2023. Investors are worried that it may be due for a correction.
- KAS had four golden crosses since October 2022, each followed by a rally.
- The Elliott Wave Theory suggests that this crypto is on the verge of forming the fifth wave of a bullish move.
- However, KAS recently failed to break through a key resistance zone, which indicates that bears are active around this level.
- If KAS fails to break through this resistance zone again, it may decline to as low as $0.032.
Kaspa has been massively bullish in 2023.
TradingView data shows that this cryptocurrency now has a YTD gain of about 1000%!
Here is some perspective as to how bullish this coin is.
Kaspa was worth about $0.0045 on 1st January. Today, it is worth about $0.048.
If an investor had bought a dollar’s ($1) worth of this cryptocurrency at the start of the year, they’d have a little more than $100 by now.
This is great! Until it isn’t.
There are now some major concerns about this cryptocurrency’s ability to keep going up.
Is a massive and devastating price decline coming to “correct things” on KAS?
Let’s answer this question in this article.
What is Kaspa?
Kaspa is one of few Layer 1 PoW blockchains that incorporates the Phantom GhostDAG protocol.
Because of this protocol, KAS can handle high block rates and process transactions with low transaction confirmation times.
This is perhaps why investors have been so interested in its cryptocurrency, KAS.
Kaspa is a blockchain with many cool features. It allows for:
- Reachability, allows users to see how different parts of the blockchain are connected.
- Block data pruning, which allows the deleting of old parts of the blockchain to save space.
- SPV proofs for verifying transactions without having to download the entire blockchain, and
- A subnetwork support, which makes it easier to implement new features on top of the KAS blockchain in the future.
Because of these amazing features, it isn’t hard to explain why a “random” cryptocurrency suddenly rallied by 1,000% in less than a year (especially during a bear market).
Kaspa’s YTD Rise
According to the charts, KAS had a total of four golden crosses since October 2022!
This is pretty amazing, considering how we are currently in a bear market.
Each of these times, the cryptocurrency rallied by
- 350% after the first
- 720% after the second and
- 210% after the third
The current Golden Cross is taking Kaspa past 40%.
All of this is amazing. However, what if we told you that there is now a glaring sign that Kaspa may be on the verge of a steep and severe decline?
Why Kaspa’s Price May Decline Soon
Have you heard of the Elliott Wave Theory?
The Elliott Wave theory is a complex topic. However, the basic idea is that the price of assets moves in five-wave patterns, followed by three-wave corrective patterns. The five motive waves are labelled 1, 2, 3, 4, and 5, and the three corrective waves are labelled A, B, and C.
Here’s something about Kaspa to think about.
The Elliott Wave Theory suggests that KAS is bullish, and is on the verge of forming the fifth wave as illustrated above.
Here’s how the cryptocurrency “may” be bearish though.
KAS rose all through the year and hit an all-time high of $0.054 sometime around late September.
However, instead of breaking through the $0.0517 zone to confirm another higher high, the cryptocurrency’s price promptly declined.
This indicates that the bears were active around this zone, and managed to reject the price of $KAS.
Because of this, we may see a price rejection to as low as $0.032.
In all, if KAS wants to remain bullish, it has to find a way to break above $0.0517 once again.
Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.