The Kusama price is bouncing back as demand for the network and other altcoins rise. KSM is trading at $274, which is about 22% above this week’s low of $225. It has a market capitalization of over $2.4 billion, making it the 60th biggest cryptocurrency in the world. Polkadot, its bigger cousin, has jumped by over 7.3% in the past 24 hours.
Kusama is a leading blockchain project that was developed by the team behind Polkadot. It acts as a launchpad for projects hoping to run on Polkadot. It also provides teams to fine-tune their applications in hopes that they will be voted for inclusion in Polkadot’s ecosystem.
In the past few months, however, some projects have moved to embrace Kusama as a real smart contracts platform.
Like all cryptocurrencies, the Kusama price has been under intense pressure in the past few weeks. It has crashed by over 57% from its highest level in 2021. It also crashed by about 50% from its highest level in November. This decline happened as investors sold the parachain auction launch after it rose ahead of the launch. Also, there have been concerns about the ongoing transition from an easy-money policy to a tight policy.
The daily chart shows that the KSM price has been in a deep sell-off in the past few months. Along the way, the coin has managed to decline below the 25-day and 50-day exponential moving averages (EMA). it also formed a descending channel pattern that is shown in blue. It has moved slightly below the upper side of this channel. Most importantly, it has moved slightly below the key resistance level at $300.
Therefore, in the near term, I suspect that the Kusama price will keep rising as bulls target the resistance at $300. It will then resume the bearish trend and retest the lower side of the channel at $220.
This post was last modified on %s = human-readable time difference 06:00