1. Kaspa’s Short-Term Holders Contributing to Price Volatility
2. KAS Long-Term Holders Show Stronger Conviction
3. Correlation Between Price Trends and Holding Patterns

Crypto analyst Jim, known as @Cryptographur on X, shared his views on the recent volatility of Kaspa (KAS) price. The selling pressure mainly comes from short-term holders.

Kaspa’s Short-Term Holders Contributing to Price Volatility

The price of Kaspa (KAS) dropped by 4% on Wednesday, while its trading volume decreased by 10.44%. At the time of publication, the price is $0.1686. Jim noted that many short-term holders have started selling their assets out of fear of further losses. These investors, who have held the asset for less than six months, did not see substantial gains and prefer to sell at the first signs of price decline. According to Jim, most of these investors lack conviction in the asset, leading to panic selling during price dips.

KAS Long-Term Holders Show Stronger Conviction

In contrast to short-term holders, long-term investors who have maintained their positions for more than six months show greater confidence. The percentage of their holdings has steadily increased, surpassing 40%, indicating that they are realizing profits and not rushing to sell their assets. Based on Jim's data, these investors see potential in Kaspa and continue to hold their positions, contributing to price stability and reducing selling pressure.

Correlation Between Price Trends and Holding Patterns

The difference in behavior between short-term and long-term holders is key to understanding Kaspa’s price movements. As long-term investors accumulate and remain inactive, their stability reduces overall selling pressure. At the same time, fear-driven sell-offs from short-term holders create temporary volatility. It is evident that long-term holders provide a foundation of support, potentially contributing to an upward trend in Kaspa’s price over time.

According to Jim's analysis, the selling pressure on Kaspa mainly comes from short-term investors who sell out of fear of further losses. Meanwhile, long-term holders confidently maintain their positions, showing trust in the asset and reducing overall price volatility.