Many altcoins have washed away gains in the past few months, including Kusama’s price, which currently trades near a critical support level. A reaction at that support could produce a bounce or break soon.
A quick recap of KSM’s price actions over the past months: the early year rally took its price to the peak of $50 but unfortunately saw a sudden rejection and later corrected lower.
It found temporal support at $29 in March, bounced back and pushed to $37 within a month. After days of consolidation around that price, it initiated a broader correction and extended a dip below the mentioned support.
This bearish action brought the price to $24 on Monday – marking the lowest level since January 7. It rejected that level and held it as support ever since. The last 48 hours of trading look indecisive with the current price stability. This could be the calm before another storm.
Howbeit, it is essential to say that the asset has entered a big demand zone (of $21 and $26) and at the same time approaching a key support level. The selling pressure should begin to subside around this zone.
A reversal could occur from this zone as it remains a targeted entry area for the bulls to step back. And if a reversal fails to happen, a crackdown will cause a devasting drop in price until the cryptocurrency finds a strong threshold level for recovery.
KSM’s Key Level To Watch
Nothing much is expected for now until the bears resume pressure. In the meantime, the support levels to keep in mind are $23 and $21.7. The lower support level to watch is $20 in case of a further dip.
The $26 level is held as immediate resistance. If the price recovers above it, the resistance level for a retest is $29. The resistance levels to watch above the descending trendline are $32 and $35.6.
Key Resistance Levels: $29, $32, $35.6
Key Support Levels: $23, $21.7, $20
- Spot Price: $25.6
- Trend: Bearish
- Volatility: High
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any projects.
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