In this Monday AT news, we are going to discuss the KSM token of the experimental blockchain Kusama. Allowing to have an interoperable infrastructure, the projects that develop on it have access to Polkadot’s functionalities. However, given the current market environment, it is very complex to maintain investor interest in a cryptocurrency. The KSM is a very good example of the difficulty the sector is currently facing. Without further ado, let’s head over to the charts to better understand its situation.
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The loss of a major level has just occurred on the KSM
After being defeated for a whole year on the resistance of $511, the downtrend took place in November 2021. From January 2022 to April 2022, it was faced with resistance at $200. However, being rejected on the EMA13 which was in confluence, the downtrend resumed its course. From June 2022 to September 2022, the KSM oscillated in a range between a key support at 43.1( dollars and a resistance at 63/65 dollars. The current problem is that in mid-September, this support in question was broken at Since then, the KSM has not been able to recover, which confirms the passage of this support into resistance on a weekly scale.
At present, the challenge is simple: break free from the EMA13 and regain the 55 dollars in order to register a new ascending peak, this will allow to resume a bullish momentum in the short term. Thus, a return to the resistance at 63/65 dollars could be considered. However, if the KSM fails to recover the $43.15, this will clearly materialize the impossibility for the buyers to recover a key level. In this context, a return to the low points of October between 23 and 27 dollars cannot be ruled out, on the contrary. However, a catalyst in the financial markets will be preferable.
What is KSM’s situation in the short term?
Via the daily scale, we have a better view of the fluctuations of the KSM. You can see the failure of the crossing of 65 dollars on the KSM. This is an area where the asset entered a range from the end of July until the end of August. Having failed to register a new bullish momentum, the range support was broken on the downside with a loss of the entire EMA13/25/32. Since mid-August, the trend has always remained bearish, the EMA32 failed to be regained. Now you can see that the resistance at $43.15 is clearly putting the buyers in check.
For the moment, as long as the resistance is not resumed (in order to consider the bullish objectives and as long as the low point is not broken downwards) we can have a range for several weeks. Thus, nothing is to report for the moment. If you have a rather bullish bias in the short to medium term, the only thing to watch out for is the resumption of the resistance which is in confluence with the EMA13/25/32. The latter are very interesting for identifying a trend reversal, provided you do not get fooled by false breakouts. Of course, if the US indices unscrew downwards and Bitcoin and Ethereum are set to fall, KSM will probably experience a new strong bearish run.
Here we are at the end of this analysis of KSM. For the time being, the most preferable situation is a temporary range until we have the one-year US inflation figures in September 2022. Depending on the dynamics of the latter, this could act as a catalyst for a further decline on the markets or, if necessary, a new rebound by KSM towards the objectives mentioned. Be attentive and manage your risk as well as possible, the preservation of your capital is essential in such a complex context on the financial markets.
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