See More

Kusama (KSM) Bounces After Massive Bullish Divergence

2 mins
Updated by Geraint Price
Join our Trading Community on Telegram

In Brief

  • KSM has broken out from a descending resistance line.
  • The daily RSI has generated significant bullish divergence.
  • There is resistance at $66 and $106.
  • promo

Kusama (KSM) has been moving upwards at an accelerated rate since July 12, but has yet to break out from a descending resistance line.

KSM has been decreasing underneath a descending resistance line since April 3. This led to a low of $43 on June 13. 

The price has been increasing since, and accelerated its rate of increase on July 12. However, it has yet to break out from the resistance line. Additionally, the price is facing resistance from the $66 horizontal resistance area.

If it were to break out, the next closest resistance area would be at $106, created by the 0.382 Fib retracement resistance level.

Descending KSM Resistance
KSM/USDT Chart By TradingView

Cryptocurrency trader @CryptoFaibik tweeted a chart of KSM, stating that the price has broken out from a long-term descending resistance line. However, as outlined above, it is not yet certain if the price has broken out from this line.

KSM Breakout
Source: Twitter

Bullish daily RSI

A closer look at the daily timeframe RSI provide a bullish outlook that suggests the price is likely to break out from the line 

The RSI has been generating bullish divergence since May 10, and managed to move above 50 on July 16. Besides the fact that movements above 50 are considered signs of a bullish trend, the indicator also completes a failure swing bottom pattern by moving above the high between the divergences. 

So, this reading indicates that an eventual breakout is the most likely scenario.

Daily RSI bullish
KSM/USDT Chart By TradingView

Future KSM movement

Finally, the six-hour chart is also in alignment with the possibility of a breakout. The main reason for this is that the price has already broken out from an ascending parallel channel. 

Breakouts from such channels usually indicate that a new upward movement has begun. Currently, the price is in the process of validating the line as support (green icon). 

If successful, this would be expected to lead to a breakout from the line.

KSM Channel
KSM/USDT Chart By TradingView

For Be[in]Crypto’s latest Bitcoin (BTC) analysis, click here

Top crypto projects in the US | July 2024
Harambe AI Harambe AI Explore
Uphold Uphold Explore
Exodus Exodus Explore
Coinbase Coinbase Explore
Chain GPT Chain GPT Explore
Top crypto projects in the US | July 2024
Harambe AI Harambe AI Explore
Uphold Uphold Explore
Exodus Exodus Explore
Coinbase Coinbase Explore
Chain GPT Chain GPT Explore
Top crypto projects in the US | July 2024

Trusted

Disclaimer

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)
READ FULL BIO
Sponsored
Sponsored