KSM Could Soon Move Upwards if This Support Area Holds

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In Brief
  • KSM is following both a long and a short-term ascending support line

  • There is support at the $47.50 and $39 areas.

  • Long-term indicators are neutral while short-term ones are bullish.

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The Kusama (KSM) price is currently in the process of validating an important resistance area as support.



KSM is likely to hold this level and eventually make another attempt at breaking the yearly highs.

KSM Bounces at Support

KSM has been following an ascending support line since the beginning of August. The upward move culminated in a high of $65.56, which it reached on Dec. 3.  KSM has been moving downwards since.



Currently, it is trading just above the $47.50 area and is in the process of creating a bullish hammer (shown with the green arrow below). If this holds, it would be a resistance/support flip, validating the $47.50 area as support.

Nevertheless, technical indicators are neutral. While the RSI is above 50 and the MACD is above 0, both are falling. The Stochastic Oscillator is very close to making a bearish cross.

If KSM were to break down, the next closest support area would be at $3.90, also coinciding with the ascending support line.

KSM Chart By TradingView

Cryptocurrency trader @postyxbt stated that a minor resistance level rejected the KSM price and should decline to at least $50.

Since the tweet, KSM has already hit this level and is in the process of creating a hammer candlestick. However, a look at lower time-frames is necessary to determine if KSM will break down or not.

Source: Twitter

Future Movement

The shorter-term six-hour chart shows that KSM is following another ascending support line and has bounced just above it, increasing the legitimacy of the current support area.

Despite no clear bullish reversal signs, the MACD has possibly begun to move upwards and the RSI is close to crossing above 50.

KSM Chart By TradingView

A look at the even smaller two-hour time-frame shows a bullish divergence in the MACD and a bullish movement by the RSI, further supporting the possibility of a reversal.

Once the price breaks out above the current descending resistance line and reclaims the $50 area, it is likely to continue moving upwards and attempt to break out to a new yearly high above $65.

KSM Chart By TradingView

Conclusion

To conclude, the KSM price should hold on above the current support area and eventually break out above the short-term descending resistance line.

On the other hand, a daily close below $48 would suggest that KSM is heading down to $39. At the current time, this doesn’t seem likely.

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Disclaimer: Cryptocurrency trading carries a high level of risk and may not be suitable for all investors. The views expressed in this article do not reflect those of BeInCrypto.

All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.
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Valdrin is a cryptocurrency enthusiast and financial trader. After obtaining a masters degree in Financial Markets at the Barcelona Graduate School of Economics he began working at the Ministry of Economic Development in his native country of Kosovo. In 2019, he decided to focus full-time on cryptocurrencies and trading.

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