A recent analysis of the cryptocurrency market for Kaspa has shown that its current price may be significantly overvalued, and expectations for it to reach $1 soon may be unfounded.
Current Market Situation for Kaspa
The analyst from the YouTube channel Crypto MindSet emphasizes the importance of analyzing in a logarithmic scale for a more accurate understanding of the Kaspa market. Despite a significant increase of 28,000% since 2022, the cryptocurrency is still trading below its 50-week and 200-day moving averages. The technical indicator 'death cross' that appeared in October confirms that Kaspa is in a bear market.
Unusual Top Formation
Kaspa distinguished itself with its unique top formation that developed over 15 months. The analyst, with eight years of cryptocurrency trading experience, describes it as one of the most 'beautiful but nasty and long tops'. In the coming years, periods of decline or sideways movement are expected before the trend recovers.
Prospects for 2025
The analyst suggests that under current conditions, Kaspa will remain in the bear market until the end of 2025. However, if Bitcoin starts a new bull cycle by then, there is a chance that Kaspa will follow. Despite this, the more likely scenario remains the formation of a sideways trend in the $0.01-0.05 range. A break above the 200-day moving average may indicate the beginning of bottom formation and change the analyst's perspective.
Currently, Kaspa remains in the technical bear market zone, and expectations for its significant growth shortly may be unfounded.
