Kusama regained momentum a few days ago and joined other layer 2 tokens in the recent market surge. It flipped through a descending trendline to test a key level following a 20% growth in a week.
Earlier this year, KSM traded as high as $49 following a 150% rally in a month. It marked that high as resistance, initiated a drop and began to lose momentum.
After several months of decline, it found support at $16.6 and started to show signs of strength. It later surged through a four-month descending trendline to test a minor resistance level on the hourly. Buying pressure is briefly paused as it now looks for the next level for increase.
A weekly candle close above June’s resistance level would confirm more upside movement in the upcoming month. But before then, we may see a slight price drop to retest the recently broken trendline as support.
The daily volume indicator has been significantly up since last week, showing signs of a price increase. A continuously enhanced volume inflow and increase in demand level could trigger more buying actions in the next few days.
Should that fail to happen, the price may roll back and look for a close support level to initiate a buy. KSM looks bullish on the daily but still trades in a bearish zone from a long-term perspective.
KSM’s Key Level To Watch
While the asset looks extremely cheap for a long-term buy, the immediate resistance levels to watch for a daily increase are $24 and $26. The next resistance level for a test lies at $28.5.
The $20 level currently serves as a retest support for a rebound. If the price slips below it, the lower support levels for a drop would be $18 and $16.2.
Key Resistance Levels: $24, $26, $28.5
Key Support Levels: $20, $18, $16.2
- Spot Price: $22
- Trend: Bullish
- Volatility: High
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.