The Kusama price rallied to the highest level since June as investors reacted to the new parachains auctions. The KSM token is trading at $387, which is the about 172% above the lowest level in July this year. It has a market capitalization of more than $3.3 billion. Similarly, the Polkadot price has risen by more than 14%.
Why Kusama is rallying
The Kusama price is rallying as the sixth batch of parachain auctions begins. For starters, parachains are layer-1 blockchains that operate in parallel with the Polkadot and Kusama networks. They typically connect to the two networks by leasing a parachain slot on the Relay Chain.
At the same time, Parachain auctions are an on-chain method that helps developers raise capital they need to fund their projects. By using on-chain metrics, the platform ensures that the funds raised during the crowdloan process go only to the intended purpose.
Some of the most popular parachain auction winners in the past were Karura, Moonriver, Shiden, and Khala. Khala is a project that hopes to become a Polkadot parachain that helps developers invoke smart contracts. Karura, on rhe other hand, is an all-in-one DeFi hub of Kusama that was started by the Acala Foundation.
Therefore, the Kusama price is rising as investors wait for more details about the auction. The expectation is that this auction will attract more members and lead to a significant growth of the network.
Kusama price prediction
The KSM price has been in a strong bullish trend in the past few weeks. Along the way, the coin’s price has risen above the resistance level at $262, which was the lowest level on May 29. The coin has moved above the 50-day EMA, the dots of the parabolic SAR, and the Ichimoku cloud. It has also risen above the key resistance level at $352, which was the highest level last week.
Therefore, at this stage, the path of the least resistance for Kusama is to the upside. If this happens, the next key level to watch will be the all-time high level at $636, which is about 64% above the current level. This will likely happen in September. The invalidation point of this view will be if the coin declines below $262.