Kaspa Price Surges 12%, But Network Activity Plummets
Kaspa's price surged by 12% in the past 24 hours, but despite this upward trend, the network is experiencing a significant decline in activity. According to data from Kaspalytics, the number of Daily Active Users (DAU) plummeted by 78% between September 17th and press time, dropping from 36,570 to around 7,910. This steep decline in user engagement was mirrored by a decrease in standard transactions, which fell from approximately 208,480 to 113,530 over the same period.
The analysis of KAS using the Liquidation Heatmap suggests that the asset may be due for a pullback based on liquidity clusters. Liquidity clusters are areas on the chart where orders are concentrated, with the depth changing based on the intensity of the coloration. Currently, the clusters are positioned below the price, indicating a potential support level around $0.038.
Several factors have contributed to KAS's performance despite weakening on-chain activity. Sentiment analysis by CoinMarketCap indicates a high reading of 4.81, suggesting that the bullish momentum is likely to continue. Additionally, Perpetual Market Capital Flow data shows that Funding Rate and Open Interest remain in the bullish territory.