Kaspa (KAS) rises by 40% weekly: further gains in sight?

After the last wave, KAS flipped WLD, ALGO and other well-known altcoins.

It has outperformed many leading digital assets, including Ripple’s XRP, within that time frame, and according to multiple market observers, it could rise even further in the near future.

What happened and what’s next?

The token is up 40% in the last seven days, with most of the gains coming in the last 24 hours. Currently, it is trading at around $0.06 (according to CoinGecko data) with a market cap of around $1.6 billion. This places KAS as the 72nd largest cryptocurrency, or larger than Worldcoin (WLD), Algorand (ALGO), Arbitrum (ARB) and other popular altcoins.

The main catalyst for the latest pump appears to be the opening of the first decentralized Kaspa Bridge. Just a few hours ago, the X account behind Dymension revealed that KAS was chosen as the new basic tool on the platform.

The rise caught the attention of numerous analysts who believe it could be the start of a major rally. X-user EuroSniper in mind the potential jump to $0.16 in the following months. Crypto King predicted a similar outcome, sketches There are several factors that could support the bullish scenario, including clearing the multi-month downtrend and holding the $0.05 zone as support.

Crypto Tony, an X-user with over 550,000 followers who discusses the performance of numerous cryptocurrencies, also contributed. hoped for a further rise to $0.074, which says their “longs need this.”

The bearish scenario

While KAS’s recent rebound is indeed significant, its current price is well below peak levels seen in the summer of 2024. At the time, the asset’s valuation shot up to $0.20, while its market cap was close to $5 billion.

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Some technical indicators suggest that KAS may not be able to regain its former glory (at least in the near future) and could be heading for a decline. The recent exchange grid flow is one of these elements.

According to data from CoinGlass, inflows have exceeded outflows over the past week, indicating that investors have abandoned self-custody methods and flocked to centralized exchanges. This is generally considered bearish as it is interpreted as the pre-sell move.