Kaspa (KAS) Price Drops, but ‘Diamond Hands’ Are Growing – Here’s What That Means

Kaspa price has been dealing with some short-term swings after getting rejected at the $0.12 mark. It’s now back around $0.10, which seems to have shaken up some mid-term holders and shifted the mood a bit among short-term traders.

But when you look at the bigger picture, things tell a different story. On-chain data shared by Kaspa Daily shows that long-term holders are actually still stacking

In fact, 13.5% of all KAS is now sitting in wallets that haven’t moved in over two years, a new record. These are what the crypto crowd calls “diamond hands”: investors who don’t flinch during price drops and keep holding through volatility.

So while some traders are taking profits and stepping back, others are holding firm. Funding rates across major derivatives platforms are still positive too, which means a lot of traders are keeping their bullish bets on. It’s a clear split: short-term nerves on one side, long-term conviction on the other.

KAS Short-Term Correction and Mid-Term Holder Behavior

Kaspa price broke through the $0.10 level earlier this month but was unable to sustain momentum past $0.12

This price rejection was followed by a return to the $0.10 range, as reported by Kaspa Daily. The recent volatility coincides with a measurable decline in the percentage of supply not moved in over three months.

KAS price chart data shows that this metric peaked near 75% in late June and has gradually declined through July

This suggests that a portion of mid-term holders sold or rotated positions during the rally. These holders often respond to key resistance levels and may have seen the $0.12 mark as an exit point.

Image Source: X/KaspaDaily Kaspa Long-Term Holders Remain Unshaken

Despite short-term fluctuations, wallets holding KAS for over two years now account for 13.5% of the total supply

This is the highest recorded level for this metric. The trend reflects sustained confidence among long-term holders, who have continued to accumulate regardless of market conditions.

The two-year inactive supply has grown steadily from under 9% in March to current levels without interruption

No declines have been observed in this group’s behavior, even during recent price swings. This segment appears less influenced by price movement and may be focused on long-term value.

Read Also: Onyxcoin (XCN) Dips Over 20% After Recent Gains: Time to Sell or Keep Holding?

While the spot market has cooled, funding rates across leading derivatives platforms have remained in positive territory

According to Kaspa Daily, this trend suggests that traders are still leaning toward a bullish outlook. Bullish funding refers to when long positions dominate and players are paying to maintain them.

This continued positivity in the futures market is opposed to the actions of short- and mid-term holders. The difference indicates the diverging strategies in groups of investors, whereby some are betting on near appreciation and others in longer term for the asset.

Kaspa Hits Resistance – Old Hands Stay StrongKaspa recently broke above the $0.10 resistance but was quickly rejected around the $0.12 zone, leading to a pullback back to $0.10. This volatility may have shaken out some medium-term holders, data shows that the number of wallets… pic.twitter.com/Rd0lirAn73

— Kaspa Daily (@DailyKaspa) July 24, 2025

KAS Price Market Structure and Investor Behavior

The rejection at $0.12 and reversal back down to $0.10 has altered short-term momentum. However, the trend among long-term investors and derivatives traders indicates a broader optimism in the direction of Kaspa

The space between those leaving on strength and those entering on dips tells us about the current market structure.

As KAS price activity continues to fluctuate, data shows that understanding who is buying, and who is not, may offer clearer signals than price alone.

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