The Calm Before the Surge?
In the ever-volatile world of cryptocurrency, every dip tells a story – and smart money knows how to read it. Kaspa (KAS), one of the fastest-rising proof-of-work coins of the last year, has recently retraced to around $0.070. While retail investors are second-guessing their positions or scrambling to cut losses, some of the largest wallets in the Kaspa ecosystem are doubling down. Quietly, strategically, and with conviction, they’re buying millions of tokens during the pullback.
This is more than just a market reaction. It’s a signal.
This article explores the current price dip, whale behavior, technical trends, and on-chain signals to answer the crucial question: Is this just another downturn, or the launchpad for Kaspa’s next breakout?
Whale Activity: Big Wallets Are Quietly Accumulating
As retail fear seeps into the market due to Kaspa’s latest correction, seasoned investors, especially whales, appear unbothered. According to data provided by Kaspa Daily, some of the top wallets are rapidly expanding their KAS positions.
Here are the numbers:
- Wallet #5 accumulated 3 million KAS.
- Wallet #7 added 2 million KAS.
- Wallet #9 secured another 3.4 million KAS.
These aren’t your average day traders. These wallets are long-term holders, often linked to institutions, venture capital funds, or early adopters with significant financial power. What’s more telling is that they’re increasing exposure while the broader market hesitates.
Their behavior is not emotional. It’s strategic.
Large investors understand something critical: the best time to accumulate is when prices revisit key support zones, especially those that historically signal reversals.
Positive Funding Rates Paint a Bullish Picture
Despite the recent correction, funding rates on major exchanges remain positive – a powerful signal in itself.
Funding rates in crypto derivative markets help determine the direction of market sentiment. A positive rate suggests that long traders (those betting on higher prices) are dominant, and are willing to pay fees to keep their positions open.
Here’s why this matters for Kaspa:
- Positive funding during a dip shows confidence, not panic.
- It implies traders expect a rebound, not continued collapse.
- It often precedes a reversal rally, as seen historically with other tokens.
Even while KAS hovers near $0.070, the broader trading community seems unfazed. In fact, many are positioning for a potential bounce rather than short-selling the downturn.
This contradicts the fear-driven reactions from smaller investors, who often sell at the bottom.
Technical Analysis: Kaspa Tests Key Long-Term Trendline
If there’s one chart that every Kaspa whale is watching, it’s the weekly trendline that has consistently served as a bounce point for price action.
This upward-sloping line has repeatedly acted as a launchpad for rallies in past cycles. In early 2023 and again in 2024, price action tested this trendline before initiating a multi-week surge.
Currently, KAS is testing this level again, giving rise to the possibility of another bounce – and possibly, a new all-time high in the making.
Key technical observations:
- Volume is increasing near support.
- Momentum indicators such as RSI and MACD are in oversold zones – historically good entry points.
- Previous dips to this trendline have resulted in 20% to 80% gains over the following weeks.
If history rhymes, then Kaspa could be on the brink of a trend reversal rather than further decline.
Why Whales Are Accumulating Now
Big investors aren’t buying blindly. They’re reading the same charts, patterns, and fundamentals the rest of the market sees, but they have the discipline to act during fear.
So why are they buying Kaspa now?
- Historical Support Level: Price is hovering at a zone that has triggered rallies before. This isn’t just support – it’s a historically high-liquidity area.
- Technical Confirmation: Whales look for confluence – multiple indicators pointing to the same conclusion. With funding rates positive, support holding, and sentiment shifting, the stars are aligning.
- Bullish Outlook for Q3 and Q4 2025: As Bitcoin stabilizes and attention turns toward undervalued altcoins, Kaspa’s low inflation, fast block times, and strong community position it as a standout pick.
- Scarcity Narrative: Kaspa’s emission schedule is front-loaded, meaning the block reward halves more quickly than most coins. This creates a natural scarcity over time, favored by long-term holders.
On-Chain Data Supports the Accumulation Thesis
Looking beyond price and charts, on-chain activity confirms the shift in sentiment.
- Wallet consolidation: Instead of distributing tokens, major wallets are combining holdings, often a sign of preparation for long-term holding.
- Exchange outflows: More KAS is being moved off exchanges into cold wallets, suggesting holders aren’t planning to sell anytime soon.
- New wallet creation: A rise in new wallets holding over 100K KAS indicates growing interest from mid-tier investors and possibly institutions.
All of this hints that the current dip is not a death knell, but a buying opportunity that larger players are seizing with confidence.
Could KAS Revisit All-Time Highs in 2025?
KAS previously peaked at around $0.16 before its recent correction. Given the pattern we’re witnessing, a bounce off long-term support, whale accumulation, and positive sentiment, retesting and breaking that all-time high isn’t out of the question.
In fact, if the macro environment remains neutral and Bitcoin holds steady above $100K, altcoins like Kaspa with strong fundamentals could enter a new price discovery phase.
Some projections, based on Fibonacci extensions and volume profile analysis, suggest KAS could reach $0.20 to $0.25 if it breaks above resistance with strong momentum.
This Is What Smart Money Looks Like
Retail panic. Whale accumulation. Positive funding rates. Strong support trendline.
All signs point to a divergence between sentiment and action, and it’s the whales that are calmly buying into weakness.
For long-term Kaspa believers, this might be the golden moment to align with the smart money. While nothing is guaranteed in crypto, the alignment of technical, on-chain, and sentiment indicators suggests that this current pullback could very well be the beginning of the next big rally.
In the end, the charts don’t lie, but it’s the whales who often write the next chapter.
