Date: Sat, Oct 26, 2024, 06:25 AM GMT
The cryptocurrency market has faced a significant fall in last 24 hours with many major altcoins suffering declines. This downturn was largely triggered by misleading news from the Wall Street Journal regarding an investigation into Tether (USDT) and rising geopolitical tensions. Amid this chaos, the price of Kaspa (KAS) dropped by over 7%, falling to $0.10 for the first time since May.
Signs of Recovery
However, KAS has shown resilience, quickly rebounding from the $0.10 support level to its current price of $0.1191. This recovery suggests that the token may have found a solid base from which to bounce back.
Analyzing Kaspa’s Drawdowns
Crypto trader @Cryptographur shared an interesting outlook on KAS, noting that the token has experienced three major drawdowns from its recent peaks:
- First Drawdown: Kaspa fell by about 39.96% from a previous high, marking a significant correction before it recovered.
- Second Drawdown: The token saw a larger drop of 46.65% from another peak, highlighting increased volatility but again managing to find a bottom before bouncing back.
- Third Drawdown: Most recently, Kaspa experienced a 47.09% correction from its all time high of $0.2079 , closely aligning with its earlier declines. This consistent pattern in percentage dips indicates that the market tends to establish a bottom around similar levels before attempting a recovery.
Potential for a Reversal
According to @Cryptographur, these drawdowns suggest that Kaspa may have a pattern of significant corrections followed by recovery rallies. With the current dip of 47% mirroring past corrections, there is potential for a reversal. If KAS can maintain its support around $0.10, this could indeed be the final dip for the token.
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