Key Takeaways
Why is Kaspa surging now?
Because whales returned after weeks of inactivity, driving aggressive spot accumulation that pushed KAS up 20%.
Is the rally supported by real demand?
Yes. Kaspa recorded a strong positive Buy Sell Delta (+15.61M) and three consecutive days of large whale orders.
Kaspa broke out of a month-long downtrend, hitting a monthly high of $0.062 before slightly retracing. As of this writing, Kaspa [KAS] traded at $0.0606, up 20.08% on the daily charts.
Over the same period, the altcoin’s volume surged 51.18% to $112 million, indicating a liquidity influx. Is this the start of a sustained rally for KAS?
KAS whales stage a strong comeback
After disappearing in the market from mid-October through November, Kaspa whales have staged a strong comeback.
Spot Average Order Size data from CryptoQuant showed three consecutive days of Big Whale Orders. The last time whale orders dominated the market was the first weeks of October.
Source: CryptoQuant
Usually, Big whale orders reflect increased whale participation, either on the demand or the supply side.
Even more importantly, these whales returned to the spot market to accumulate the altcoin. According to Coinalyze, Kaspa has recorded a positive Buy Delta for three consecutive days.
Source: Coinalyze
Over this period, the altcoin recorded 63.81 million Buy Volume compared to 48.2 million in Sell Volume. As a result, Kaspa recorded a positive Buy Sell Delta of 15.61 million, a clear sign of aggressive spot accumulation.
When whales return to accumulate after a period of inactivity, it signals renewed confidence in the market. With whales on the demand side, they absorb any selling pressure, thus boosting upward momentum.
Profit takers not left behind
As expected, with Kaspa recording significant gains for four consecutive days, holders who had been underwater rushed to cash out.
According to CoinGlass data, the altcoin has recorded a positive Spot Netflow for five consecutive days. At press time, Netflow was $51k, a significant drop from $797k recorded the previous day, reflecting sustained inflows.
Source: CoinGlass
Often, prolonged exchange inflows put significant downward pressure on prices, leading to lower prices if demand fails to absorb.
Is Kaspa’s momentum sustainable?
Kaspa rallied as whales returned to the market to accumulate the altcoin. As a result, KAS flipped its short-term moving averages: the 20- and 50-day EMAs.
Source: TradingView
This suggests that buyers have regained market control, the earliest sign of a trend reversal. Therefore, if buyers maintain their current appetite, KAS will target EMA100 at $0.062.
A close above these levels will strengthen the altcoin and set it up to target EMA200 at $0.074. However, to validate the trend’s strength, its Directional Movement Index (DMI) must make a bullish crossover.
In failure to do so, Kaspa will find support around EMA50 at $0.053.
