Kaspa's Price Outlook: No New All-Time High in Current Cycle, Says Analyst

In a recent video, Freeman of Finance presented a detailed analysis of Kaspa's price outlook, suggesting that the cryptocurrency may not achieve a new all-time high during the current market cycle. The analyst's perspective is based on a thorough examination of chart patterns, market behavior, and comparisons with Bitcoin's dominance.

The analyst begins by noting the growing interest from Bitcoin maximalists in Kaspa, which he views as a positive sign. However, he argues that despite this increased attention, Kaspa is not yet prepared for another significant price surge. He contends that the traditional four-year cycle, which many crypto investors rely on, is no longer applicable, and the market no longer follows these predictable patterns.

Freeman of Finance highlights that Kaspa has already experienced an extraordinary price movement, increasing by 14,000x during a period when Bitcoin only doubled. This explosive growth, he argues, has fundamentally altered the dynamics of the market. While Kaspa's price skyrocketed early on, it has since trended downwards as Bitcoin gains strength, indicating a shift in how market cycles play out.

The analyst also addresses the lack of a significant price surge for Kaspa despite the development of the KRC20 tokens, which brought memecoins and other digital assets into the Kaspa network. He attributes this to the absence of smart contracts and a working decentralized exchange, which creates friction for new users and hinders growth.

Looking ahead, the analyst sees potential in the upcoming launch of Zellus Swap, the first decentralized exchange for Kaspa. This platform is expected to facilitate easier trading of Kaspa-based tokens, providing users with an experience similar to Uniswap on Ethereum. However, until Zellus Swap is launched, the ecosystem will continue to lack the necessary infrastructure for wider adoption.

Freeman of Finance acknowledges that while KAS may still reach much higher prices in the future, he does not believe it will achieve a new all-time high in the current bull cycle. He cites technical reasons, such as the lack of higher highs in the charts and weakness in price action, as well as broader market trends. Institutional money flowing into Bitcoin is pushing BTC higher, while Kaspa's mining and distribution of rewards add sell pressure to the market, slowing down momentum.

The analyst also predicts a potential rotation in the market. When Bitcoin reaches its peak, possibly hitting $145,000, investors may start taking profits and move money into undervalued projects like Kaspa. This could trigger a strong run for KAS, even if the rest of the market is in a downturn.

Freeman of Finance credits Jonathan Sampolitsky, the founder of Kaspa, for designing a more scalable proof-of-work network. Kaspa processes 10 blocks per second and is listed on multiple exchanges, including Kraken. However, the analyst believes the next significant leap for Kaspa will occur once smart contracts and the decentralized exchange are fully operational.

Despite the flat price performance of Kaspa over the past months, Freeman of Finance argues that KAS could outperform during the next bear market. When Bitcoin cools off and investors look for new opportunities, Kaspa's strong fundamentals could position it for growth. He points to other altcoins that have surged recently, suggesting that Kaspa may still be undervalued and has room to grow when the right moment arrives.

The key takeaway from Freeman of Finance's analysis is that while Kaspa's time may not be now, its potential for future growth remains significant. The analyst emphasizes the importance of smart contracts, a working decentralized exchange, and user-friendly tools for Kaspa to thrive. Until these elements are in place, the Kaspa price may continue to lag behind the rest of the market. However, if Bitcoin peaks soon and the rotation begins, Kaspa could surprise investors, especially those expecting the usual four-year cycle to repeat.