Kaspa

<ul>
 <li>Kaspa (KAS) price has been declining since mid-February, contrary to the overall bullish trend in the cryptocurrency market.</li>
 <li>Decreasing open interest and funding rates suggest a shift in sentiment towards pessimism among KAS holders.</li>
 <li>Currently trading at $0.12, KAS faces the risk of further decline towards $0.10, with support levels weakening and a possibility of a 21% correction.</li>
</ul>
The <a href="https://thenewscrypto.com/?s=Kaspa" target="_blank" rel="noopener noreferrer nofollow">Kaspa</a> (KAS) price has been on a downward trajectory since mid-February, defying the broader cryptocurrency market’s bullish trend. While the entire crypto market flourished, KAS ended up shedding a significant portion of its gains. Despite the substantial corrections, this may not be the bottom for the altcoin, as further losses appear to be on the horizon.
Kaspa’s price has been consistently declining over the past four weeks, resulting in an overall correction of 32%. This development is particularly noteworthy as it occurred while the rest of the crypto market was experiencing a rally.
The sharp decline in open interest indicates that KAS holders are switching from an optimistic to a pessimistic outlook as a result of this divergence.
<figure class="wp-block-image size-large"><img decoding="async" width="1024" height="241" src="https://thenewscrypto.com/wp-content/uploads/2024/03/image-144-1024x241.png" alt="" class="wp-image-94141" srcset="https://thenewscrypto.com/wp-content/uploads/2024/03/image-144-1024x241.png 1024w, https://thenewscrypto.com/wp-content/uploads/2024/03/image-144-300x71.png 300w, https://thenewscrypto.com/wp-content/uploads/2024/03/image-144-768x181.png 768w, https://thenewscrypto.com/wp-content/uploads/2024/03/image-144.png 1536w" sizes="(max-width: 1024px) 100vw, 1024px">
</figure>
<h2 class="wp-block-heading" id="h-kaspa-funding-rates-hint-at-potential-bearish-sentiment">Kaspa Funding Rates Hint at Potential Bearish Sentiment</h2>
In addition to the decline in open interest, the funding rate for Kaspa is also experiencing a dip. The funding rate is a mechanism used in perpetual futures contracts to ensure that the market price remains close to the underlying asset’s spot price.
In the case of KAS, this shift appears to be taking place, as funding rates have plummeted severely. If the price decline continues, these funding rates may turn negative, further reinforcing the bearish sentiment surrounding the altcoin.
<figure class="wp-block-image size-large"><img decoding="async" width="1024" height="472" src="https://thenewscrypto.com/wp-content/uploads/2024/03/image-145-1024x472.png" alt="" class="wp-image-94142" srcset="https://thenewscrypto.com/wp-content/uploads/2024/03/image-145-1024x472.png 1024w, https://thenewscrypto.com/wp-content/uploads/2024/03/image-145-300x138.png 300w, https://thenewscrypto.com/wp-content/uploads/2024/03/image-145-768x354.png 768w, https://thenewscrypto.com/wp-content/uploads/2024/03/image-145.png 1536w" sizes="(max-width: 1024px) 100vw, 1024px">
</figure>
Currently trading at $0.12, Kaspa’s price has already lost the support of the 50 and 100-day Exponential Moving Averages (EMA). As it inches closer to the support line at $0.11, KAS is susceptible to a plunge to $0.10, which would represent an additional 21% correction. At this level, KAS would find stronger support from the 200-day EMA, potentially providing a soft landing for the altcoin.
However, there is a possibility that Kaspa’s price could change its trajectory and trend upward. This is due to KAS sharing a negative correlation of -0.40 with Bitcoin, meaning that the altcoin is likely to follow the opposite path of BTC.

Kaspa Faces Potential Downtrend: Can KAS Sustain $0.12 Level?

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