Kaspa (KAS) is going through a quiet but important shift. While price action has stayed relatively muted, on-chain data shows a clear change in who is holding KAS. 

Short-term traders are slowly stepping out, while medium- and long-term holders continue to increase their share. This kind of rotation often changes how price behaves in the weeks that follow.

Dzata shared by Kaspa Daily shows that the share of holders who have held KAS for more than three months dipped slightly this month. 

On the other hand, wallets holding six months or more, as well as wallets holding one year or two years, increased steadily.

This may be an indication of a rotation of the short-term accounts out of the market, likely due to frustration with the sideways price action or pullbacks.”

This month, the share of KAS holders above 3 months edged slightly lower.

At the same time, medium-term holders (6+ months) and long-term holders (1–2+ years) continued to rise. Shorter-term holders are rotating out, while longer-term conviction keeps building. pic.twitter.com/m4wL4ftQJw

Meanwhile, longer-term holders are either holding firm or adding exposure. That matters because short-term holders tend to sell quickly into volatility, while long-term holders are less reactive.

When weak hands exit and conviction holders take over, sell pressure often becomes thinner. It does not guarantee an immediate rally for the KAS price, but it can reduce the risk of sharp downside moves caused by panic selling.

On the 4H chart, the Kaspa price remains in a broader consolidation phase after failing to hold the late November spike. Price is trading around the $0.04–$0.045 area, which has acted as a short-term balance zone.

Momentum indicators reflect this pause. The Williams %R is moving sideways, showing neither strong oversold nor overbought conditions. This points to indecision rather than aggressive selling. OBV has also flattened, which suggests that volume-driven distribution has slowed.

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ATR continues to trend lower, meaning volatility is compressing. When ATR drops like this, it usually signals that the market is waiting for a trigger. That trigger could come from a broader market move or a Kaspa-specific catalyst.

Liquidation data remains quiet, with no major spikes. This supports the idea that leverage has been flushed out and the market is calmer than it was during previous sell-offs.

Thus, with short-term investors departing while longer-term ones are injecting money in order to buy the stocks, a more stable period in terms of structure for KAS is beginning. A better market scenario can lead to a stable recovery instead of an emotional rebound.

Kaspa may react in the following ways in the short term: The Kaspa price may go sideways because buyers and sellers exhibit caution. A clean hold above current support could open the door for a slow grind higher. 

On the other hand, if KAS loses the $0.04 area with volume, another leg of consolidation lower would still be possible.

For now, the key takeaway is not the daily price change, but the shift in who controls supply. As short-term traders exit and long-term conviction builds, the Kaspa price action becomes less fragile and more dependent on real demand rather than speculation.

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The post Kaspa Loses Short-Term Holders as Long-Term Conviction Builds – What’s Next for KAS Price appeared first on CaptainAltcoin.

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