Kusama (KSM) Price Analysis: Short breakout coming!!
Kusama is an experimental, decentralized web project from Polkadot. It helps to detect vulnerabilities in the platform. The focus of Kusama is on a fast, secure, scalable blockchain infrastructure. It encourages experimental development and allows developers to build their own blockchains with features such as fast iterations, open governance, cutting-edge technology, engaged community, and experience.
Kusama uses its token KSM to validate, nominate validators, conduct governance voting, and bond parachains. The consensus is nominated proof of stake (NPoS). Kusama has a relay chain that connects participating blockchains for better scalability. The Parachains inside Kusama enable autonomous use case blockchains that share data and security.
The price of Kusama (KSM) has increased today
As of today, Kusama (KSM) is priced at $44.97, experiencing an 11.98% increase in the last 24 hours, while showing a slight decline of -1.69% over the past 7 days. The 24-hour trading volume stands at $57,838,097.99. With a circulating supply of 9 million KSM, the market capitalization is $404,565,333.
Price History
The highly successful initial coin offering (ICO) of Kusama in October 2019 raised over $140 million, selling more than 10 million KSM tokens. Initially priced at $1.8 during launch, Kusama’s value surged to $61 by the end of 2020, reflecting a significant uptrend driven by traders.
Analyzing Kusama’s past performance is crucial for accurate price predictions. Notably, between April and May 2020, KSM saw a substantial increase from $2 to $7, showcasing early investors’ keen interest. Another notable surge occurred between October and December 2020, pushing the price from $27 to $62.
In 2021, Kusama’s value experienced a remarkable transformation, reaching an all-time high of $623 from $70. This surge was fueled by increased investor confidence and strong momentum. However, after reaching this peak, the KSM token faced a notable decline, dropping to $280 by the year’s end. Subsequently, the token continued on a downward trend, currently resting at a price of $44.97.
The lowest price for Kusama was $0.8766 on January 14, 2020, which is almost 4 years ago. The current price for Kusama is 5,003.34% higher than the all-time low price.
KUSAMA (KSM) On May 18, 2021, the highest price for Kusama was recorded at $621.71. Over the past two years, the average price for Kusama has decreased by 92.80%.
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Technical Analysis
It got rejected by a strong resistance zone; currently, it is being respected by strong trendline support, which, if broken, would be ideal for short.
Trading Strategy: A breakout from the Bullish Flag pattern indicates a likely uptrend continuation, targeting $50 in the short term and $65 in the medium term. Set a price alert and establish a Stop Loss at $34.50, just below the prior swing low and nearest support zone.
Pattern Overview: The Bullish Flag pattern is a short-term rectangle between diagonal lines, typically forming after a sharp price increase. It suggests a brief pause before the previous trend resumes, making it a reliable setup for entering an existing trend. Breakouts are initiated in the direction of the prevailing trend, and while higher volume is preferred, it’s not mandatory.
Momentum Analysis: MACD Line below MACD Signal Line indicates a bearish momentum, while RSI around 50 signals a neutral position. Rising MACD Histogram bars suggest potential upcoming upward momentum.
Key Levels: The nearest Support Zones are at $38 and $30, with Resistance Zones at $50 and $65. Keep an eye on price movements around these levels for decision-making.
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Price Prediction
Considering the price movements of Kusama at the start of 2023, cryptocurrency experts anticipate an average KSM rate of $39.77 in January 2024. The projected minimum and maximum prices are estimated to be $38.48 and $41.06, respectively.
Potential Return on Investment (ROI) is 7.2%
Endnote
Kusama, an experimental project from Polkadot, aims for a secure and scalable blockchain. Its token, KSM, facilitates various functions like validation and governance. The current price is $44.97, up 11.98% in 24 hours, but down 1.69% in 7 days.
In 2019, Kusama’s ICO raised over $140 million, with an initial price of $1.8. It surged to $61 by the 2020 end but faced a decline to $280 in 2021. Now, it rests at $44.97.
Technical analysis suggests a Bullish Flag pattern breakout, targeting $50 and $65. The current support is at $38, with resistance at $50.
Cryptocurrency experts predict an average KSM rate of $39.77 in January 2024, with a potential ROI of -7.2%. It’s crucial to consider the historical performance for accurate predictions.
