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KSM Could Soon Move Upwards if This Support Area Holds

2 mins
Updated by Ryan Smith
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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 Ascending Support
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.

KSM Movement
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 Long-Term Movement
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 Short-Term Movement
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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In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

Valdrin-Tahiri.jpg
Valdrin Tahiri
Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona School of Economics. Shortly after graduating, he began writing for several different cryptocurrency related websites as a freelancer before eventually taking on the role of BeInCrypto's Senior Analyst. (I do not have a discord and will not contact you first there. Beware of scammers)
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