Kusama’s native cryptocurrency KSM is without doubt one of the many casualties of the most recent bear market. It has to date plunged by roughly 50% for the reason that begin of Might and the heavy low cost has despatched it crashing to January 2021 ranges.
KSM loved a wholesome bullish restoration in March, seemingly ending its lengthy bear run which kicked off in November final 12 months. Nonetheless, the restoration was short-lived after peaking at $207 on 2 April, after which the bears regained management. KSM dropped as little as $62.3 this week courtesy of sturdy promoting stress. It pushed previous the $118 key assist stage earlier than dropping under $100.
KSM appears like it’s due for a bullish restoration
KSM’s closely discounted price ticket makes it an excellent candidate for bullish restoration. Some upside would no less than be anticipated to yield resistance bear the two.618 and 1.618 Fibonacci retracement ranges. They align with the $101 and $143 value ranges respectively.
Apparently, KSM noticed an appreciation in worth by 21.15% during the last day. It was, moreover, altering wallets at $80.67, on the press time.
Supply: TradingView
Observe that the Fibonacci retracement ranges keep in mind the most recent low, not accounting for any extra draw back. On the time of this evaluation, KSM’s RSI was deep within the oversold zone on the 26.91 mark, therefore making a case for a possible bullish restoration. Its MFI additionally highlighted important outflows in the previous few weeks, however it was throughout the accumulation zone at press time.
Supply: TradingView
The expectations of a bearish reversal are additional rationalized by the ADX and -DI. They confirmed the sturdy bearish momentum however the prolonged draw back and ADX divergence highlighted the elevated chance of a reversal.
KSM historic value motion reveals that it at all times bounces again after greater than 5 consecutive bearish every day candles. The newest bear market resulted in seven consecutive crimson candles.
KSM ought to thus be gearing up for restoration if historical past repeats itself. Its provide held by whales has to date registered an uptick within the final 24 hours. The FTX derivatives funding charge additionally registered a pointy restoration after the current dip, signifying recovering confidence within the derivatives market.
Supply: Santiment
Present circumstances appear to be lining up in favor of the bulls. Nonetheless, the markets have to date proved unpredictable and therefore the sudden can nonetheless occur.
On this, the sudden can be one other value dip, probably sending KSM under $60. The result will finally rely upon whether or not there will probably be one other damaging market shock.
