Kusama Price Analysis: KSM Moves Closer to a Potentially Massive Upswing
- Kusama is on the verge of a breakout from a key descending parallel channel.
- KSM uptrend affirmed by a bullish signal from the MACD on the four-hour chart.
Kusama price seems to be following the general uptrend in the market. Following the immense bleeding at the beginning of last week, most crypto assets spent the subsequent days gasping for air. The weekend session was characterized by an uptick in price action across the board, which appears to have spilled into the new week.
Meanwhile, Kusama trades around $220 at the time of writing, rebounding from support at $150. With the 50 Simple Moving Average (SMA) functioning as support, the path with the slightest resistance will likely be upward in the coming session.
Kusama price eyes breakout from the descending channel
Kusama lifted from the support provided by the descending parallel channel’s lower boundary. The middle border was overcome, allowing bulls to push toward the upper edge, which still stands in the way. Despite the delay at this level, a break past this resistance will pave the way for gains aiming for $350.
It is worth noting that several hurdles may delay the breakout, such as the 100 SMA currently at $270 and the 200 SMA on the four-hour chart.
However, the Moving Average Convergence Divergence (MACD) has a bullish outlook, as seen on Kusama’s chart. The MACD adds credence to the optimistic narrative. Realize that this technical indicator, which follows the path of a trend and calculates its momentum, appears to be turning bullish within the same time frame for the first time since June 22.
As the 12-day exponential moving average crossed above the 26-day exponential moving average, the odds for a bullish impulse increased significantly. Buyers will be encouraged to raise their stakes as soon as the MACD moves past the zero line into the positive region.
KSM/USD four-hour chart
Looking at the other side of the fence
The Relative Strength Index (RSI) is a crucial technical tool that follows the trend of an asset and calculates its strength. Traders use the RSI to identify instances when the asset is overbought or oversold.
Moreover, the aggressiveness of the bears and the bulls is also shown by this indicator. As for Kusama, the RSI brushed shoulders with the overbought area and appears to be retreating. If this downward movement continues, we will see KSM start to correct, erasing the gains accrued in the last few days.