Kaspa price has continued to dip. Now around 50% down since the May high. Is KAS in trouble? That’s the big question many holders are asking as the coin continues to bleed despite the bullish sentiment surrounding its technology and ecosystem.

In a new video on the What Is Crypto? YouTube channel, analyst Matt gives his honest take on where Kaspa stands right now, why he still believes in the project, and what might finally push him to cut his position. He mixes real optimism about the tech with some hard truths about the chart and he’s not sugarcoating anything.

Before diving into Kaspa, Matt looks at the broader crypto market. Bitcoin has been stuck in a choppy range between $101K and $110K. Although it’s been forming higher lows, the lower highs are preventing any real breakout. That indecision is making it tough for altcoins like Kaspa to get any momentum.

Matt also mentions global tension and war fears, which he says often cause markets to get oversold. He points out that during the panic earlier in August, prices dumped, only to bounce sharply afterward. So while the war narrative adds fear, it might actually be a setup for a reversal if the pattern repeats.

He also highlights a few key indicators he’s watching, Ethereum’s performance against Bitcoin, Bitcoin dominance, the US dollar index, and the stock market. ETH/BTC needs to rise to kick off an altcoin season, and a drop in Bitcoin dominance would help too. Meanwhile, the US stock market is doing well, and a weakening dollar could be good for risk assets like crypto.

When it comes to Kaspa, Matt doesn’t hide how rough the chart looks. The KAS price has been stuck in a long range since late 2023. It fell out of that range, recovered a bit, but recently dropped below it again. Unless the current dip forms a new higher low, Matt says, we could be looking at a continued downtrend.

To break that trend, he wants to see KAS bottom above the last low and climb past $0.13. But if the Kaspa price drops below $0.05, Matt admits he might have to reconsider holding. As much as he loves the project, he’s realistic: if it keeps bleeding, he may sell. Not because he lost belief in the tech, but because there’s still money to be made elsewhere.

Despite the chart, Matt is still strongly bullish on Kaspa because of what it represents. Kaspa is a proof-of-work project built to be a faster, more scalable version of Bitcoin. It already processes 10 blocks per second, which makes it 6,000 times faster than Bitcoin. A future upgrade could take it to 100 blocks per second, making it 60,000 times faster.

He sees this speed as a real reason Kaspa could thrive as a crypto payment solution. He mentions the upcoming Kaspa Experience event in Berlin, where vendors will only accept KAS for payments. That’s real-world utility, not just hype.

There’s also growing development on Kaspa. Matt highlights Kazai Messaging, a peer-to-peer encrypted messaging app built on the Kaspa chain by a developer named Oz Ghosty. It’s open source, fast, and extremely cheap to use. Sending messages via the Kaspa blockchain costs almost nothing, just a few KAS for thousands of messages.

Another major development is the work being done by Igra Labs. They’re building a layer that will make Kaspa compatible with the Ethereum Virtual Machine. That means Ethereum smart contracts and tools will be able to run on Kaspa. It’s a big deal because it allows developers to tap into Ethereum’s ecosystem while taking advantage of Kaspa’s fast, secure architecture.

Matt says this EVM-compatible layer should launch around mid-July. He urges viewers to check out the Igra Labs team, who bring a ton of blockchain experience. Their goal is to merge the best parts of Bitcoin-style security with the flexibility of modern chains like Ethereum. If they succeed, it could make Kaspa one of the most powerful and user-friendly Layer 1s out there.

Read Also: XRP Price Set for a Surprise Move in July and August, According to Top Macro Analyst

Even with all this bullish development, Matt admits that the Kaspa price hasn’t reflected any of it. Part of the issue, he says, is the rapid token emission schedule. Kaspa released coins at a fast pace early on, which didn’t allow for the same kind of slow, decentralized distribution that Bitcoin had. That created heavy sell pressure that still lingers today.

Still, Matt believes the long-term vision is strong. But he’s not blind to what the chart is saying. If KAS price holds above the current level and starts forming higher highs, he’s staying in. If it loses $0.05, he’s going to think hard about exiting, even though he’s still a fan of the project.

His message to viewers: always do what’s right for your own situation. Whether you’re bullish, bearish, or just watching, this isn’t a one-size-fits-all scenario. Whatever happens next, Kaspa is definitely a project worth paying attention to.

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The post Kaspa Analyst Breaks Silence on KAS 50% Crash—Here’s What Comes Next appeared first on CaptainAltcoin.

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