Cryptocurrency

Will Kusama [KSM] defy further selloff amid crypto market contagion

Kusama’s native cryptocurrency KSM is among the many casualties of the newest bear market. It has to this point plunged by roughly 50% because the begin of May 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 yr. However, 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 robust promoting strain. It pushed previous the $118 key assist degree earlier than dropping beneath $100.

KSM appears to be like like it’s due for a bullish restoration

KSM’s closely discounted price ticket makes it a very good 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 worth ranges respectively.

Interestingly, KSM noticed an appreciation in worth by 21.15% over the past day. It was, moreover, altering wallets at $80.67, on the press time.

Source: TradingView

Note that the Fibonacci retracement ranges keep in mind the newest low, not accounting for any further draw back. At 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 vital outflows in the previous few weeks, nevertheless it was inside the accumulation zone at press time.

1652448693 885 Will Kusama KSM defy further selloff amid crypto market contagion

Source: TradingView

The expectations of a bearish reversal are further rationalized by the ADX and -DI. They confirmed the robust bearish momentum however the prolonged draw back and ADX divergence highlighted the elevated chance of a reversal.

KSM historic worth motion reveals that it all the time bounces again after greater than 5 consecutive bearish each 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 this point registered an uptick within the final 24 hours. The FTX derivatives funding fee additionally registered a pointy restoration after the current dip, signifying recovering confidence within the derivatives market.

1652448694 631 Will Kusama KSM defy further selloff amid crypto market contagion

Source: Santiment

Current situations appear to be lining up in favor of the bulls. However, the markets have to this point proved unpredictable and therefore the surprising can nonetheless occur.

In this, the surprising could be one other worth dip, doubtlessly sending KSM beneath $60. The end result will in the end rely upon whether or not there shall be one other destructive market shock.

Related Articles

Leave a Reply

Your email address will not be published.

Back to top button