Here's Why Whales Are Manipulating Kaspa (KAS) Price

The Kaspa price has been trading sideways for months now, and all big KAS enthusiasts out there need to accept this, whether they like it or not.

Cryptocurrency traders and holders have been keeping an eye on Kaspa (KAS) price movements, especially after its impressive rally in 2024. However, the recent sideways trading has left many wondering what's next for the digital asset.

According to a notable analyst, Csm19XD, the Kaspa price is currently being manipulated by "whales" in the market. Here's a closer look at the manipulation pattern and how it's impacting KAS prices.

The Price Manipulation Pattern

A review of the price charts reveals a consistent downtrend in KAS prices throughout the second half of 2024. Notably, the open interest remains high and even increases at times during this decline.

Typically, high open interest in a falling market indicates that more traders are betting on further price drops or that long-term holders are accumulating more to lower their average entry price.

However, in the case of Kaspa, the data shows something different. There are more accounts holding long positions compared to short ones, even as prices continue to decline. This suggests that regular traders are still buying, thinking the price will bounce back, but something else is also at play.

On October 25th, a massive $800,000 worth of long positions got liquidated across Binance, ByBit, and Huobi. This wasn't just a random market move; it came with a 35% drop in open interest, indicating that many traders were forced out of their positions.

What makes this suspicious is that while many long positions got wiped out, very few new short positions were opened. This points to a few large players potentially controlling the market.

These "whales" might be strategically shorting KAS to trigger liquidations and force panic selling from smaller traders. The evidence suggests these institutional players are deliberately pushing prices down, aiming to shake out retail investors before potentially buying back at lower prices.

This pattern of manipulation is becoming increasingly clear in the Kaspa market data, impacting the price movements and traders' strategies.

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