The supply of KAS has reached an all-time high, which may lead to a price decline. Despite a 2.72% increase in the price of Kaspa [KAS] over the past 24 hours, market sentiment indicates that its price may continue to fall. The circulating supply of KAS reached a record 25.62 billion in the past 24 hours, resulting in a tightening of demand and a significant decrease in trading volume by 76.13%. If the support level of $0.1276 is breached, KAS could drop by 10.47%. Derivatives market data suggests that KAS may decline further, with the amount of long positions being liquidated far exceeding that of short positions.

Over the last 24 hours, Kaspa [KAS] has gained by 2.72% on the charts, with the altcoin trading at $0.1322. However, market sentiment seemed to suggest it could begin dropping soon, extending its previous week’s losses of 10.94%.In fact, this bearish sentiment has been driven by unfavorable KAS fundamentals. Especially as market participants continue to lose interest in the crypto asset.Growing supply threatens KAS growthThere has been a surge in the available supply of KAS across cryptocurrency exchanges, according to Kaspalytics. In the last 24 hours alone, the circulating supply of KAS hit a record high of 25.62 billion KAS available on exchanges. A growing circulating supply on exchanges could lead to a demand squeeze.A demand squeeze occurs when the supply of an asset isn’t met with adequate demand, or even faces lower demand, causing the asset to decline.As the KAS supply grew, there has been a reduction in the number of transactions occurring within the same timeframe.Also, the accepted transaction count—successful transactions—dropped from 212,920 to 50,520 on normal exchanges. This represented a 76.13% decline – Indicating a potential price drop.Normal exchanges in this scenario include all cryptocurrency exchanges, except Coinbase.A massive drop in transaction counts across these exchanges revealed that the market is starting to lose interest in KAS. This could result in a major downside for its price.A 10% drop may be on the horizonRight now, KAS is at a major crossroads on the chart, with the altcoin trading sluggishly above its support level at $0.1276.Typically, support levels act as catalysts for a major price pump to the upside. However, KAS has moved slowly after hitting this level, indicating weak buying pressure across the board. Should this support level fail, KAS could see a decline of 10.47%. This will push it to the base of the consolidation channel at $0.1147, which it exited on 14 January.At the same time, the derivative market revealed that KAS may be skewed to fall lower. Especially since the liquidation data for the last six days has been unfavorable for long traders.Between 18 January and now, a total of $719,900 in long contracts has been forcefully closed in the market, compared to $51,740 in short positions closed.A large disparity such as this indicates that the market is in favor of short traders, and there is a possibility that the price of KAS will drop further from its press time level.

KAS supply reaches a new high, price may face a 10% decline risk