en
Back to the list

Kusama Price Continues to Flourish While the Crypto Market Bleeds

source-logo  thecoinrepublic.com 14 May 2021 05:25, UTC
  • KSM/USD bounced from a low of $438.96 to an intraday high of $587.33, all within 24 hours
  • The KSM/BTC pair is trailing at 0.0108 with a gain of 15.59% at press time
  • The current ranking of Kusama is at #41 with a live market cap of $4,442,145,080 and a market dominance of 0.41%

KSM/USD on the daily chart had marched towards establishing an ATH of $633 in Wednesday’s intraday session. Even though the market tanked by 12.88%, KSM managed to climb up by 6.87% in today’s intraday session. The daily chart of KSM demonstrates a prominent breakout from the descending channel pattern. The breakout was accompanied by an impulsive wave that backtested the $365 level (FIB 0.618) and witnessed an upswing of 43% in a short span of 2 days. Numerous projects hit their head on the 0.5 FIB extension, but KSM just bounced off from it, thus validating that level as one of the pivotal support zones. 

The daily RSI is about to set foot inside the overbought territory while the weekly Stochastic RSI had transpired a bullish cross before the beginning of the impulsive wave. 

KSM/USD on TradingView.com

KSM/USD is not even halfway through its impulsive wave.

tradingview

The SuperTrend indicator has already flashed a buy signal on the 4-hour chart. At present, KSM is sitting at $543 (FIB 0.786), the range where most sell-offs are provoked. However, KSM managed to maintain its bullish momentum and potentially eye the psychological target of $723( FIB1.618). 

The fact that the 20 EMA(yellow) is in confluence with the 0.5 FIB extension makes it one of the significant support levels on account of that range rejecting KSM in previous sessions. KSM not only breached the critical resistance of $482, but it also backtested that level as support. From what it appears. KSM is now heading towards the accumulation phase, which might pause the impulsive wave. On the downside, KSM’s inability to sustain above the support trend line would expose the key EMA’s as support. 

The technical indicators suggest a strong buy signal as evidenced by the MACD, which is about to undergo a bullish crossover on the 1-hour chart, and the exponential moving averages, which are currently hovering below the trend on every time frame.  

What is KUSAMA, and where does it stand against POLKADOT? 

Kusama (KSM) is a public pre-production environment for Polkadot (DOT), one that allows any developer to experiment and test new blockchains or applications before releasing them on this network. Official Polkadot updates are also tested on Kusma before their release. As per tokenomics, Kusama (KSM) has a maximum supply of 10 million tokens, unlike Polkadot (DOT), which has no supply limit. Kusama, besides being a testing ground for Polkadot, is a much better long-term investment. 

CONCLUSION: KSM has stolen the spotlight by continuing to rally despite the current market conditions. Most of the technical indicators are in favor of buying this digital asset. KSM does appear to be at the beginning of a massive impulsive wave, and a minor accumulation phase above the strong support region will not invalidate the wave.

SUPPORT : $271. $365

RESISTANCE : $568, $633

thecoinrepublic.com