Kaspa's Price Volatility Could Trigger $30 Million Short Squeeze

Kaspa has regained the attention of traders following a tumultuous June, with the cryptocurrency's price action exhibiting significant volatility. The key level that has captured the market's interest is $0.09. According to Kaspa Daily, if the price of KAS reaches this threshold, over $30 million in short positions could be liquidated, potentially sparking a significant market movement.

Despite the intense pressure, the community sentiment surrounding Kaspa has remained remarkably robust. Both the sentiment and the technical charts are now indicating a potential breakout moment for the cryptocurrency. The liquidation heatmap reveals a substantial accumulation of short positions between $0.078 and $0.09. Currently, KAS is trading just below this range at approximately $0.0769. If the price manages to breach this zone, it could trigger a wave of liquidations, driving the price sharply higher.

If Kaspa successfully reaches the $0.09 mark, approximately $30 million in short positions would be forced to close. This scenario could ignite a short squeeze, propelling the price even higher. The bars under the chart illustrate where leveraged trades are concentrated, with a significant volume of trades positioned above $0.08. Many of these trades are operating at high leverage levels, ranging from 25x to 50x. This situation sets the stage for a potential short squeeze above $0.09, as hinted by Kaspa Daily.

The chart also highlights long liquidations stacked between $0.073 and $0.076. If the price moves downward, these positions could be forced to close. However, the red liquidation curve flattens around $0.072, indicating that most high-leverage longs were either cleared earlier or have stop-losses set below this range. Support for KAS remains near $0.062–$0.066, where the price bounced on June 20–21. This zone remains crucial in the event of downside pressure.

Kaspa's community sentiment has stayed above 85% throughout June, despite the token experiencing a nearly 30% decline from its early-month high. While the price decreased, sentiment began to recover around the June 20 low, climbing above 90% as the price stabilized near $0.078. The recent dip to the $0.06 support level triggered volatility, but investor conviction remained strong, with sentiment holding steady in the 85–90+ range. This resilience suggests continued support from long-term investors or public optimism in a potential comeback.

The divergence between price and sentiment indicates that Kaspa's short-term trend is at a critical juncture. The $0.078–$0.080 region is currently acting as short-term resistance. A breakout above this level could gain momentum towards the $0.09 target. Conversely, if the KAS price falls below $0.074, bullish momentum may stall. Both the price structure and sentiment are pointing to a pivotal moment for Kaspa's short-term trend.