KSM has dropped significantly in recent months, particularly this year when markets have fallen. However, given its recent price movement, it could be due to a significant price adjustment.
Although the Kusama blockchain has been developing at a steady rate, this growth has not been reflected in the price of KSM. Instead, the cryptocurrency has been on a general downward trend, but that may be about to change. When you zoom out on KSM's charts, you can see that it has been trading in a falling wedge pattern since last year.
Lower lows are common in a falling wedge pattern, which is seen to be a forerunner to a bullish breakout. In KSM's wedge pattern, the support and resistance lines are currently converging towards each other. The price has been confined to a narrow range, increasing the likelihood of a breakout.
KSM's historical performance shows that it always bounces back strongly after striking the support line. However, its most recent encounter did not produce similar consequences, highlighting the lack of purchasing pressure instead. Given the current market conditions, such a result is not surprising.
KSM Bullish Signs
A bullish breakthrough is expected from a falling wedge with lower lows. The fact that Bitcoin is currently seeking to rebound from oversold levels supports this. The DMI also shows that the bears are losing their momentum. In the meantime, compared to the preceding dip, the MFI created a greater high versus a lower low in the price. This indicates that the most recent dip had less spread than the prior one.
The prerequisites for strong accumulation and a bullish comeback appear to be met by KSM indicators. However, this does not rule out the possibility of further fall, since the market is not always predictable.
The cryptocurrency market is still recovering from the most recent crash, and the bearish onslaught may not be over yet. The sideways performance of KSM in recent days indicates that there is insufficient purchasing volume to drive a significant comeback. It reflects the fact that whales have yet to begin accumulating following the most recent crash.
The recent small gain in market capitalization represents retail accumulation following the crisis. The institutional and sophisticated money appear to be assessing the market and exercising caution. Despite the fact that the recovery appears to be overdue, present market conditions indicate that there is still a chance of downside before a substantial rebound.
