Futures open interest for KAS down 10% in 24 hours amid market selloff

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In a significant shift in market sentiment, Kaspa's futures market experienced a notable contraction as traders reduced their leveraged positions during the recent market downturn. The cryptocurrency's futures open interest declined by 10% within a 24-hour period, reflecting broader capitulation among leveraged traders amid heightened market volatility.

The decline in open interest coincided with KAS price falling 7.10% on the day, suggesting that traders were liquidating their long positions as market conditions deteriorated. This pattern indicates that the rally fueled by leveraged bets had lost its momentum, with market participants becoming increasingly cautious about maintaining exposure to the digital asset.

The contraction in futures activity represents a critical inflection point for KAS. When open interest decreases alongside falling prices, it typically signals a phase of deleveraging where participants are de-risking their portfolios. The simultaneous drop in both metrics demonstrates that the market was experiencing genuine selling pressure rather than mere profit-taking from established positions, indicating underlying weakness in buyer demand during this market selloff period.

Funding rates turn negative as KAS price drops below $0.065 support level

Market Dynamics and Technical Analysis

KAS experienced a significant bearish reversal throughout 2025, with funding rates turning negative as the token's price breached critical support levels. The deterioration accelerated when KAS fell below the $0.065 support zone, a level that had previously demonstrated resilience in holding buyer interest.

Negative funding rates indicate excessive long positioning in perpetual futures markets, creating conditions for cascading liquidations. When KAS slipped below $0.065, this triggered forced selling that compounded downward pressure. The technical setup revealed that KAS had broken through a critical support level that remained intact since November 2023, fundamentally shifting market sentiment from constructive to overtly bearish.

On-chain metrics and volume analysis showed selling pressure intensified as traders liquidated leveraged positions. The transition to negative funding rates reflected a fundamental shift in market positioning, where short sellers gained conviction while long traders faced mounting losses. This dynamic perpetuated the downside spiral as support zones between $0.065–$0.066 failed to establish meaningful recovery foundations, pushing KAS toward successively lower price discovery levels.

Long/short ratio decreases to 0.8 as bearish sentiment prevails

2025 Market Sentiment Shift: KAS Long/Short Ratio Analysis

The cryptocurrency market experienced a significant bearish turn in 2025, with KAS's long/short ratio declining to 0.8, signaling a notable shift in investor positioning. This metric represents the proportion of long positions relative to short positions, and a reading below 1.0 indicates that short positions outnumber long positions among traders.

This decline reflects institutional investor pullback from the market, a pattern observed across multiple asset classes during 2025. The sentiment shift corresponds with broader market dynamics where hedge funds and institutional players reduced their exposure to risk assets. According to market data, KAS has been making higher lows since the $0.05 mark in April 2025, demonstrating price consolidation despite the bearish sentiment reading.

The long/short ratio decrease to 0.8 suggests that market participants are positioning defensively, with more traders establishing short positions than long positions. This contrasts with periods of bullish optimism where ratios typically exceed 1.0. Such positioning often precedes significant volatility or continued downward pressure, making it a critical indicator for traders monitoring KAS price action and overall market sentiment during this challenging period.

FAQ

Is kas coin a good investment?

KAS coin shows promise for long-term investors. Its innovative technology and growing adoption suggest potential for significant value appreciation by 2025, making it an attractive investment option in the crypto market.

What is kas coin?

KAS is a cryptocurrency based on BlockDAG architecture and GHOSTDAG protocol. It uses proof-of-work consensus and is the native token of the Kaspa network.

Can Kaspa reach $10 dollars?

Yes, Kaspa could potentially reach $10 with strong adoption, technological progress, and favorable market conditions. Its innovative blockchain design positions it well for future growth.

How high will Kaspa go?

Based on current trends, Kaspa is projected to reach $0.04173 by December 15, 2025. This represents an 8.63% increase from its current price.