Will Kusama [KSM] defy further selloff amid crypto market contagion
Kusama’s native cryptocurrency KSM is without doubt one of the many casualties of the most recent bear market. It has up to now plunged by roughly 50% because the begin of Could and the heavy low cost has despatched it crashing to January 2021 ranges.
KSM loved a wholesome bullish restoration in March, seemingly ending its lengthy bear run which kicked off in November final 12 months. Nonetheless, the restoration was short-lived after peaking at $207 on 2 April, after which the bears regained management. KSM dropped as little as $62.3 this week courtesy of sturdy promoting strain. It pushed previous the $118 key assist degree earlier than dropping under $100.
KSM seems like it’s due for a bullish restoration
KSM’s closely discounted price ticket makes it candidate for bullish restoration. Some upside would not less than be anticipated to yield resistance bear the two.618 and 1.618 Fibonacci retracement ranges. They align with the $101 and $143 worth ranges respectively.
Apparently, KSM noticed an appreciation in worth by 21.15% during the last day. It was, moreover, altering wallets at $80.67, on the press time.
Supply: TradingView
Notice that the Fibonacci retracement ranges bear in mind the most recent low, not accounting for any extra draw back. On the time of this evaluation, KSM’s RSI was deep within the oversold zone on the 26.91 mark, therefore making a case for a possible bullish restoration. Its MFI additionally highlighted vital outflows in the previous few weeks, however it was throughout the accumulation zone at press time.
Supply: TradingView
The expectations of a bearish reversal are additional rationalized by the ADX and -DI. They confirmed the sturdy bearish momentum however the prolonged draw back and ADX divergence highlighted the elevated chance of a reversal.
KSM historic worth motion reveals that it all the time bounces again after greater than 5 consecutive bearish every day candles. The most recent bear market resulted in seven consecutive pink candles.
KSM ought to thus be gearing up for restoration if historical past repeats itself. Its provide held by whales has up to now registered an uptick within the final 24 hours. The FTX derivatives funding charge additionally registered a pointy restoration after the current dip, signifying recovering confidence within the derivatives market.
Supply: Santiment
Present situations appear to be lining up in favor of the bulls. Nonetheless, the markets have up to now proved unpredictable and therefore the sudden can nonetheless occur.
On this, the sudden could be one other worth dip, probably sending KSM under $60. The result will in the end rely on whether or not there will probably be one other adverse market shock.
