Kusama’s native cryptocurrency KSM has finally managed to regain its May levels after the June crash.
This is after delivering a healthy bullish performance. But surprisingly, the previous support is now meeting resistance.
Even para-chain auctions failed to protect KSM from the downside it’s been through this year so far.
But again, the entire crypto market is losing and cryptocurrencies have moved at the same time. The same goes for the latest bullish relief.
KSM has struggled to bounce back above USD 60 since it crashed below the same price level in June.
However, the latest bullish conditions in the crypto market brought good news for KSM.
The latter managed to gain just over 50% from $45.3, its lowest price level in July.
The price rose to $69.9, slightly above the May support, before returning to its $65.7 press time price.
KSM’s latest advantage was capped by a small sell-off once it entered the overbought zone, as indicated by the RSI.
Also worth noting is that it hit a double top where the second top had a higher price point than the previous top. The RSI had a lower high, confirming the bullish weakness.
The slump in KSM’s price action in the last 24 hours of press time reflects a sharp drop in whale balances.
Whale supply fell 0.41% over the past day to press time level of 43.44%.
This was confirmation that whales have made a profit after the price entered overbought territory.
The decline in whale supply corresponds to the sharp rise in KSM volume to its highest level in the past four weeks.
KSM could be due to a long-term downside, perhaps down to the 50% RSI level, given the magnitude of the whale supply outflow.
Push forward regardless
Kusama has maintained healthy development activity since early July when the price started to recover.
This is a healthy sign that could be encouraging for investors, but that remains to be seen.
KSM’s current price outlook suggests that there could be some more selling pressure in the near term.
However, it is still relatively close to its recent bottom and far from its all-time high (ATH). KSM therefore has a long road to recovery ahead of it.
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