KSM has suffered a lot in recent months, especially this year when the markets collapsed. However, it could be due to a major price change, given the price action over the past few months.
The Kusama blockchain is growing at a healthy pace, although that growth is not reflected in KSM’s price action. The cryptocurrency has instead been in an overall bearish trend, but that performance is about to change. Zooming out on the KSM charts shows that the chart 3 shows a falling wedge pattern that it has been trading in since last year.
A falling wedge pattern is often characterized by lower lows and is considered a precursor to a bullish breakout. The support and resistance lines in KSM’s wedge pattern are currently converging towards each other. The price is now being squeezed into a tight band, increasing the likelihood of a breakout.
KSM’s historic performance shows that it always registers a substantial bounce-back after touching the support line. However, the recent interaction did not yield comparable results, instead highlighting the lack of buying pressure. Such an outcome is not surprising given the prevailing market conditions.
Will KSM Make a Bullish Breakthrough?
A falling wedge with lower lows would produce a bullish breakout. This is supported by the fact that the cryptocurrency is currently trying to recover from oversold conditions. The bears also appear to be losing momentum, as evidenced by the DMI. Meanwhile, the MFI formed a higher high versus the lower low in the price compared to the previous dip. This means that the last dip did not have as much distribution as the previous one.
KSM indicators appear to be in line with the conditions needed for strong accumulation and a bullish recovery. However, this does not necessarily guarantee that there will not be more drawbacks and the market is not always straightforward.
The crypto market is struggling to recover from the latest crash and the bearish attack may not be over yet. KSM’s sideways performance in recent days is a sign that there isn’t enough buying volume to make a substantial recovery. It reflects the observation that whales have not begun to pile up after the last crash.
The slight increase in market capitalization in recent days reflects the accumulation of retail sales after the crash. It seems that the institutional and smart money is measuring the market and being cautious. While the recovery may seem belated, current market conditions indicate that downside risk still exists before a major recovery occurs.
This post Analyzing Kusamas [KSM] possible outbreak in the near future
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