KSM has suffered a major decline over the past few months, especially as the market plummeted this year. However, given the price action over the past few months, it could be due to the large price movement.
The Kusama blockchain is growing at a healthy pace, but that growth is not reflected in KSM’s pricing action. Instead, cryptocurrencies have been on a bearish trend across the board, but their performance could change soon. Collapsing the KSM’s chart, you can see that the three charts are highlighting the downward wedge pattern that has been trading since last year.
A falling wedge pattern is often characterized by low lows and is considered a harbinger of a bullish breakout. The support and resistance lines of the KSM wedge are currently converging towards each other. The price is now squeezing into a narrow range, making a breakout more likely.
KSM’s historical performance shows that it is always recording significant rebounds after hitting the support level. However, recent interactions have not yielded similar results, but instead highlight the lack of buying pressure. These results are not surprising given the prevailing market conditions.
KSM achA bullish breakout for example?
A falling wedge along with a lower low is expected to result in a bullish breakout. This is supported by the fact that cryptocurrencies are currently trying to recover from oversold conditions. Bearishness also appears to be losing momentum, as seen in the DMI. Meanwhile, MFI has formed highs and lows that are high in price compared to the previous decline. This means there wasn’t much distribution in the recent decline compared to the previous one.
The KSM indicator appears to be in line with the conditions needed for a strong build-up and a bullish recovery. However, this does not necessarily guarantee that there will be no further declines and the market is not always straightforward.
The cryptocurrency market is struggling to recover from the latest crash, and the bearish attack may not end there. The sideways movement of KSM over the past few days is a sign that there is not enough buying volume to show a significant recovery. This reflects the observation that whales have not started accumulating since the recent collision.
The slight increase in market cap over the past few days reflects retail accumulation after the collapse. Institutional and smart money seems to be growing the market size and paying attention. Although the recovery appears delayed, current market conditions suggest there is still downside risk before a major recovery.