An Alt coin to consider
With Bitcoin consolidating and the broader crypto market retracing, many traders will look to “buy the dip” in BTC. Other than Bitcoin, though, what is the most promising alternative crypto that you want to be holding and or buying right now? Kaspa.
I will not go into the all the specifics of the coin’s technical features in this article, but I will mention some key traits. Kaspa uses a novel proof-of-work consensus mechanism utilizing a feature implemented on Ethereum’s blockchain called GhostDAG. This makes it interesting not just because I am a big fan of PoW blockchains, but because there has not been any big/new PoW blockchains created recently. This puts Kaspa in a category where there are not any new competitors to rival them.
Kaspa also has a unique approach to tackle the blockchain trilemma from their website “Kaspa’s consensus layer uses GhostDAG, a proof-of-work consensus protocol that generalizes Nakamoto’s chain into a directed acyclic graph of blocks (blockDAG). GhostDAG incorporates “orphan” blocks into the chain to form a blockDAG, and then uses a novel greedy algorithm to order the blocks such that well-connected, honest blocks are favored, quickly and with high probability. GhostDAG allows Kaspa to circumvent the traditional tradeoff of blockchains, improving on block rate by orders of magnitude while maintaining the theoretical security guarantees of Bitcoin”
Other great aspects of Kaspa are extremely fast confirmations and a very high throughput. Plus, there was the recent update to rust which dramatically decreased block times now exceeding 10 blocks per second, with the goal being 100 blocks per second. Bitcoin by comparison completes approximately 1 block every 10 minutes.
At current pricing of $0.16 Kaspa has already gone over 200x in 2023. While this is extremely impressive, I believe Kaspa still has the possibility of going another 100x in 2024.
On a weekly candlestick chart of Kaspa we can identify a “shooting star” for this week. Earlier this week the candle had been a strong green candle and was forming a pure “three white soldiers” until Wednesday when it started to decline along with the vast majority of alternative cryptos. Since then, Kaspa has formed four consecutive red candles with lower highs.
The first area where Kaspa could find support is $0.14 and if we get a pivot here it would represent a good buying opportunity. If it were to drift further to $0.09 is the next level of support, I do not think it will drift lower than $0.09 and current resistance lies at $0.19.
