Key highlights:

  • The KAS price is holding key support near $0.02725 as traders watch for its next move
  • Kaspa remains roughly 87% below its all-time high, fueling undervaluation debates
  • CoinCodex projects the KAS price could reach $0.03483 over the next month

Kaspa has been a tough one to watch. Loyal community, solid tech narrative, but the price just keeps drifting near multi-year lows. It's got people split on what comes next.

The debate heated up again when crypto commentator Lucky asked what a lot of people are wondering: is Kaspa actually undervalued, or have holders just been waiting too long for the market to finally notice?

Fair question. The KAS price is sitting near a major support zone, down about 87% from its all-time high. That's either a massive bargain or a warning sign. Depends on who you ask. To some, that's a steal. To others, it's a sign that the market still isn't buying the story.

 

The KAS price is sitting at a make-or-break level

We analyzed the KAS chart shared by crypto analyst Lluciano Lucky. KAS is trading around $0.0277, just above the recent low of $0.02724, and still miles below the major resistance zone starting at $0.040. Since peaking near $0.21, it's been a steady stream of lower highs and lower lows. 

For bulls, the job is simple: defend this support and start climbing back. The first hurdle is $0.03019. Break that, and $0.03224 comes into focus. Beyond that, the real test is $0.040, that's been a major barrier and marks the bottom of the long-term supply zone.

This is why the current area matters so much. Bulls see the KAS price trading near a historical value zone around $0.027, where a base could begin to form. Bears see a market that is still struggling below key resistance levels.

Why Kaspa supporters believe the market is missing the bigger picture

The weak price action has not changed the conviction of many Kaspa supporters. A recent discussion shared by BSCN focused on Kaspa's goal of achieving what it calls "real-time decentralization." 

The network uses Proof-of-Work security but aims to confirm transactions in seconds instead of the longer confirmation times commonly associated with traditional PoW networks. Supporters also point to DAGKnight, Kaspa's upcoming protocol upgrade. 

The whole design is built to keep things fast when the network gets busy, without sacrificing security or decentralization. The tech is solid, it's just waiting for the market to catch up. The challenge is that the market has not yet rewarded that narrative, leaving the token well below its previous highs.

Kaspa market cap data and 87% drawdown are hard to ignore

One of the strongest arguments from bulls comes from the size of the correction itself. The KAS price is trading roughly 86% to 87% below its all-time high. Historically, many major crypto assets have formed cycle bottoms after declines of similar magnitude.

Kaspa drawdown from ATH chart

There is another detail worth noting. The drawdown has been deepening gradually, moving from around -86.4% to roughly -87.1% over recent periods. That type of slow decline is often associated with seller exhaustion instead of panic selling.

Kaspa's valuation is another reason some investors remain optimistic. The network's market capitalization is fluctuating between roughly $780 million and $820 million, with the KAS price trading around $0.03. Price and market cap have been moving almost one-for-one, indicating that supply changes are not driving the weakness.

Kaspa market cap chart

At around $800 million, Kaspa sits in the mid-cap category. That means it is large enough to be established but still small enough that a return of investor demand could have a noticeable effect on price.

For perspective, a move back to $0.06 would more than double the KAS price from current levels and still leave it well below its all-time high. A return to $0.10 would represent an even larger recovery.

The Kaspa price is approaching a make-or-break zone

We analyzed both the daily and 4-hour charts. The same level keeps showing up: $0.02725. On the daily, that's the 0.786 Fibonacci retracement. A lot of traders watch this zone because it's usually the last line of defense before a trend either bounces or breaks.

Kaspa crypto daily chart analysis

Daily KAS chart analysis

But KAS is still below the 100-day SMA at $0.02915. That means the bigger trend is still under pressure. The 4-hour chart tells the same story. Support is holding for now, but the trend hasn't flipped yet. Simple as that. 

KAS is holding just above that $0.02725 Fibonacci level, with the 100-period SMA at $0.02698 sitting right beneath it. Together, they form a support zone buyers have to defend.

Kaspa 4-hour chart analysis

4-hour KAS chart analysis

Momentum isn't giving a clear signal yet. Daily RSI is at 53.43, neutral ground, room to move either way. The 4-hour RSI is a bit lower at 47.09, showing short-term momentum has cooled but hasn't hit oversold territory. So it's a waiting game right now.

What could come next for the Kaspa price?

It all comes down to one level: $0.02725. As long as KAS holds above that support, a recovery toward $0.03019, then $0.03224, and eventually $0.04642 is still possible. If that support breaks, the next level to watch is $0.02554. Lose that, and we could be looking at $0.020 or lower. 

So right now, the KAS price is stuck between two realities. On one side, it's trading at a heavily discounted price. On the other hand, the chart hasn't confirmed a recovery yet. The answer is still up in the air. 

According to CoinCodex’s 1-month KAS price prediction, the price is projected to reach around $0.03483, which is above the current trading range near $0.027-$0.028 and would put the KAS price back above the key $0.030 resistance area if that target is achieved.