KUSAMA (KSM) Analysis: Unexpected Bears put KSM Coin into Short-term Trouble

By October 28, 2021Polkadot
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ksm
  • KUSAMA nose-dived to $369.7 yesterday and is now trading at the same level as on 19th October
  • This sharp turn happened due to market correction after BTC achieved its new high price
  • The KSM coin is now seeking recovery amidst the 5.6% fall in its market cap

With the codebase almost the same as that of Polkadot, KUSAMA saw a fall in its market value by almost $30. This was a result of the correction made in the market after many investors booked their profits off a few of the most dominant cryptocurrencies. The KSM/BTC pair comes to be 0.006157 BTC, an intraday loss of 3.40%. The same goes for the KSM/ETH as the value stands at 0.09025 ETH with a decrease of 1.31% during the intraday session.

Tradingview

KSM Coin May Stabilize and Move Towards a Profitable Mark

The sudden fall saw the increase in its trading volume by more than 26% along with the loss booked by the sellers, as shown in the volumetric histogram in the chart. KSM coin has started the grind to stabilize and may return to a profitable mark in the future if the accumulation and slow climb are taken into consideration. KUSAMA was trading over the MA lines a few days ago until the sudden downward trend. Now the value is under the lines, meaning that the digital coin is going to experience resistance from these lines. Surprisingly, the 200 MA line has overshadowed the other two, suggesting that such unforeseen dips won’t matter in the future.

Tradingview

Looking at the 4-hour time frame chart, one can observe that the MACD line has stayed above the neutral level for almost half a month before tumbling down. The current divergence observed has arisen from the recent fall and the position of the signal line signals either holding or buying the asset at a low price. The RSI level suggests a neutral zone for the upcoming week after the current value dipped to the oversold zone. KUSAMA is going to face resistance at $377.35,$394.13 and $406.9 and support at $354.63 and $340.68.

Conclusion- The current scenario may support the actions of buyers and give hope of recovery after getting accumulated. The KSM coin can break the resistance if another bearish correction doesn’t take place.

Resistance- $377.35, $394.13 and $406.9

Support- $354.63 and $340.68

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