Unlike many other alternative cryptocurrencies that have seen some level of growth over the past month, Kaspa [KAS] has taken a different route by consistently falling in value throughout this period.
During this time, KAS has been following a downward trendline, and currently, it is edging closer to the lower end of this pattern.
Presently, Kaspa is trading at $0.1265, marking a 5.21% decrease in the last 24 hours. Over the course of a month, the token has plummeted by 26.49%, and on a weekly basis, the decline extends by 3.46%.
The prevailing market conditions indicate a significant negative sentiment surrounding Kaspa, leading many investors to close their positions in the token.
Moreover, according to CryptoCrypto’s assessment using Market Prophit data, Kaspa is facing intense negative sentiment, with a negative market sentiment score of -0.0465 and a Crowd Z-score sentiment of -5.2061.
These metrics illustrate a lack of confidence among investors regarding the future performance of the token.
Insights from Kaspa’s Performance Charts
As per CryptoCrypto’s analysis, Kaspa is currently witnessing a robust downward trend in its value.
For example, the Relative Strength Index (RSI) has dropped to 31, coming close to the oversold territory, indicating a prevailing seller’s market sentiment.
This downward momentum is further strengthened by the fact that the +DI of the Directional Movement Index (DMI) is positioned below the -DI, emphasizing the dominance of sellers and suggesting a continuing downtrend.
Delving deeper into the data, Kaspa’s Long/Short Ratio has fallen below 1 following a sustained decline observed on daily charts. With a ratio of 0.66, it implies that short selling positions are prevailing, indicating a predominantly bearish sentiment among traders.
Furthermore, Kaspa has witnessed significant liquidation of long positions over the past fortnight. The process of liquidating long positions typically intensifies downward price movement in the market.
As more long positions are liquidated, the selling pressure escalates, further fueling the ongoing downtrend in Kaspa’s value.