Kusama: Factors why KSM is struggling to find ample trading volume

The Kusama community’s native cryptocurrency, KSM has been trading inside a falling wedge sample because the second half of 2021. However, it pushed out of that sample on the finish of final week, however the outcomes have been underwhelming.

KSM has been on an total bearish trajectory since November 2021. It bounced off its descending resistance line on 8 November, marking the beginning of its greatest sell-off. The value retested the identical resistance line on 20 April earlier than the bears might lengthen their dominance. It hovered simply above the help line between 11 May and 10 June earlier than breaking under, signifying help weak spot.

The calm earlier than a storm

Low promoting volumes have up to now restricted KSM’s draw back, in addition to its upside. This is regardless of breaking out of the help and resistance vary. As a consequence, the value maintained numerous sideways efficiency in the previous few days. KSM traded at $47.8 at press time.

Source: TradingView

KSM’s comparatively flat efficiency has taken place regardless of the numerous accumulation indicated by the MFI. The RSI additionally registered some upside however failed to push past the impartial 50 degree. The restricted value motion displays the dearth of traders’ confidence, in addition to the prevailing market uncertainty.

1656607223 74 Kusama Factors why KSM is struggling to find ample trading

Source: TradingView

Despite KSM’s present predicament, a current replace from the Kusama crew offered insights into what they’ve been engaged on. It additionally offers insights into what to anticipate shifting ahead.

The replace revealed that Kusama is growing the Kusamaverse as a metaverse infrastructure the place builders can work together and construct freely with each other. While this is excellent news for Kusama’s future, the developer exercise metric signifies decreased exercise since mid-June.

1656607223 480 Kusama Factors why KSM is struggling to find ample trading

Source: Santiment

The drop within the developer exercise metric might have contributed to low traders’ confidence, therefore the low trading volume. This statement additionally displays the truth that whales have been decreasing their KSM balances. The provide held by the whales dropped to its lowest month-to-month degree at 44.16% by 29 June, confirming the lack of confidence by whales.

Is KSM poised for a restoration?

There is a major potential that Kusamaverse might contribute to a rise in demand for KSM shifting ahead. However, the cryptocurrency’s value motion is nonetheless closely influenced by the general market sentiments. This means KSM’s skill to ship any vital upside is presently pegged to the general crypto market’s restoration.

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