Kaspa Token Price Surges Amid Marathon Digital’s Mining Expansion
Kaspa prices have experienced a significant increase, rising 28% week-to-date and reaching a daily high of around $0.18 on June 27. The token also achieved a new all-time high on June 5.
The unique BlockDAG architecture of Kaspa allows the platform to generate multiple blocks simultaneously, enabling the network to process one block per second.
After reaching its all-time high, Kaspa prices underwent a correction, likely due to profit-taking by bearish investors. However, a new partnership could provide further positive signals for the token.
Marathon Digital Holdings has announced its expansion into Kaspa mining. The company began evaluating Kaspa in May 2023 and deployed its first Kaspa ASICs by September 2023.
Furthermore, Marathon Digital has acquired 60 petahash of KS3, KS5, and KS5 Pro ASICs, with 30 petahash already operational in Texas. The remaining ASICs are expected to become operational by the third quarter of 2024.
As of June 25, Marathon has mined 93 million KAS, valued at approximately $15 million. This increase in hash power strengthens the network security and transaction speed of Kaspa. Marathon’s involvement enhances the network’s reliability and credibility in the digital asset market.
Adam Swick, Marathon’s chief growth officer, highlighted the strategic advantages of diversifying into Kaspa mining. This move aligns with Marathon’s objective to diversify its revenue streams while supporting proof-of-work ecosystems.
The price action of KAS on June 27 was volatile, with bulls and bears competing for control over the Kaspa token. After a bearish start that saw the price drop to $0.17, bulls managed to push the price up and achieve some gains.
However, the rally is facing resistance from a descending trendline that has been in place for several months. This trendline previously limited the price action when it reached its all-time high near $0.19.
It appears that bears are determined to prevent the Kaspa token price from reaching $0.2. Breaking above the trendline could help the price rise to resistance near $0.197.
Furthermore, surpassing the immediate resistance would enable to drive the price rally towards the 0.786 Fibonacci resistance near $0.228.
However, if the trendline proves to be barrier, the price of K could test the support of the 20-day exponential moving average (EMA near $0.16. below the immediate support level would the price to drop to the support of the100-day EMA near $.14.
The relative strength of the Kaspa token remains neutral, with reading of 65.59 the daily charts.