The Kusama price made a bullish break-out on Tuesday as investors continued to watch the upcoming parachain slot auctions. The KSM coin is trading at $417, which is above the key resistance level at $372. The jump has brought its total market capitalisation to more than $3.4 billion, making it the 50th biggest cryptocurrency in the world.
Kusama is a blockchain project that was developed by Gavin Wood, a co-founder of Polkadot. The platform is often seen as the younger cousin of Polkadot, the eighth biggest coin in the world.
Kusama is usually a freewheeling platform where developers create platforms that are then moved into Polkadot. As such, developers are never afraid of making mistakes in Kusama’s platform. At times, many developers are actually preferring to launch their projects in Kusama without the need for moving them in Polkadot.
The Kusama price is rising as investors focus on Polkadot’s parachain auctions that will start next week. These auctions will see users back their favourite projects with their tokens. Some of the top platforms that will participate in the auctions are Picasso, Quartz, Genshiro, and Acala.
Therefore, there is a likelihood that we will see more activities in Kusama and Polkadot ahead of the auctions. Analysts believe that this auction will see the most activity.
The daily chart shows that the Kusama price made a bullish breakout above the key resistance at $372 on Tuesday. Along the way, the coin has managed to move above the 25-day and 50-day exponential moving averages (EMA). The MACD has moved above the neutral level. Most importantly, Kusama is slightly below the key resistance level at $450, which was the highest level on September 12.
Therefore, I believe that this bullish trend will continue as bulls target the next key resistance level at $537, which was the highest level on June 10. This price is about 28% above the current level. However, a drop below the key support at $372 will invalidate this view.
This post was last modified on %s = human-readable time difference 07:26