KSM Technical Analysis – February 2022
After hitting the quarterly high in November of 2021 at $518, the price of Kusama (KSM) started declining and began a bearish run. The price initially declined to around $300, and it started correcting. Nonetheless, after hitting resistance at $405, the price continued on the downtrend.
After a period of consolidation at the $260-300 zone, the price had an impulse surge of 32%. However, it failed to break the upper trendline, hence it continued to decline. The price then declined by 55% over the next 30 days.
Recently, the price of KSM found support at $155, where a rounding bottom started to take shape. The price has briefly increased recently, but it stopped at $205. The price of Kusama (KSM) is now below $200. It is still bearish due to the lack of indicators for a trend reversal. The fear and greed index suggests that KSM traders are still fearful, suggesting that the price of KSM could keep declining, other things equal.
Key Structures
Support
- $155
Resistance
- $205
Indicators
Moving Average
Both the 50-MA and the 20-MA of a 4-hour chart are currently above the price of KSM, indicating that the trend is still facing downward and that the price of KSM could keep declining in the coming days/weeks.
The 9-EMA of a 4-hour chart is also currently above the price of KSM, suggesting that KSM is bearish in the shorter run and that the EMA line could act as resistance to the price.
Relative Strength Index
The RSI of a 4-hour chart recently went above 70, indicating that KSM became overbought. Hence, the recent retracement was anticipated. The RSI now is below 50, meaning that the price is bearish, but it has shown signs of recovery in the last few candlesticks.
MACD
The MACD line of a 4-hour chart is currently below the signal line and has now moved below the baseline, suggesting that the momentum is bearish for Kusama and that the price could keep declining in the coming days.
Fibonacci
The Fibonacci retracement levels of a 4-hour chart suggest that the price of KSM retraced to the 61.8% level, indicating that the price could go higher if that support level proves to be strong. Other things equal, KSM could break the upper trend line based on these levels.
Price Prediction KSM – February 2022
Based on this technical analysis on Kusama (KSM), the price of KSM could keep increasing in the short run. While the overall trend is bearish and the indicators suggest signs of downtrend continuation, we could see KSM attempt to rebound in the coming days. Fibonacci levels, as well as plenty of fear in the fear & greed index of a 4-hour chart, are usually followed by a trend reversal, so we could see KSM attempt to break resistance at $205 in the short run. If that happens, then KSM could as well aim for $300 in February. This would be largely supported if the likes of BTC maintain their bullish nature and stay above $40,000 in the coming weeks.
Latest News for KSM – Affecting Price
The crypto market had quite a nice start to February. Bitcoin managed to break a crucial resistance structure, which hinted at a possible trend reversal for the market. This has not impacted the price of either KSM or DOT as much as it was anticipated. Nonetheless, the two are currently building momentum for the coming weeks.
Kusama on the one hand is constantly engaging with their community and providing access to community members to help develop the project even more. What both Kusama and Polkadot do is allow community members to win grants in the Kusama network. Then, they can use the funds to create a project that would benefit the Kusama ecosystem.
Did you know that anybody can request a grant for a specific project to address useful or unsolved issues for @Polkadot, @kusamanetwork & @substrate_io by submitting an RFP (Request for Proposals)?
Find our list of open RFPs here: https://t.co/PCLk92XBtI
— Web3 Foundation (@Web3foundation) February 9, 2022
Furthermore, Kusama is also joining the festivities of the approaching Valentine’s Day. They have created an opportunity for community members to gain NFTs and send them to their loved ones for Valentine’s Day. For some, there are no better gifts in the world than virtual assets from some of the world’s most creative artists.
Thinking of a perfect gift for Valentine’s Day? Express your non-fungible love with a Kusama Valentine’s NFT!
From now until Feb. 15, choose an NFT from artist @ascii_bit and send it to your love bird, even if they don’t have a Kusama address.#expectlovehttps://t.co/6LPBdyizeq
— kusama (@kusamanetwork) February 11, 2022
Lastly, it is worth noting that the parachains have drastically increased the utility of both DOT and KSM. Kusama has already slotted 24 parachains, while Polkadot is yet to fulfill 10. The Founder of Digital Finance Group (DFG) James Wo has acknowledged the progress of both Polkadot and Kusama as ‘sister’ blockchains. James Wo also expressed how influential these two could be in improving the cryptocurrency market. He believes that people are yet to find out the true potential of these two.