$KAS Rally Falters as On-Chain Activity Plummets

Kaspa ($KAS) has been one of the top-performing tokens in recent weeks, gaining 12% in the past 24 hours and a whopping 23% over the week. However, despite this impressive rally, data suggests that on-chain activity is weakening, which could potentially lead to a decline in price.

The Daily Active Users (DAU) metric, which tracks unique addresses on the chain, has plummeted by 78% since September 17th, from 36,570 to 7,910. This significant drop in activity is not limited to just users, as transactions have also decreased, with a standard transaction count of 208,480 in the past 24 hours dropping to 113,530.

However, it's worth noting that transactions via Coinbase for Kaspa remain relatively stable, suggesting that U.S. investors still hold a bullish outlook on the asset.

Furthermore, analysis of $KAS using the Liquidation Heatmap warns of potential liquidity clusters, which could lead to a pullback in price. According to CoinGlass, these clusters are currently lined below the price, with a few above it, indicating that the closest support level could be around $0.038.