Kusama: Factors why KSM is struggling to find ample trading volume
The Kusama community’s native cryptocurrency, KSM has been buying and selling inside a falling wedge sample for the reason that second half of 2021. Nonetheless, it pushed out of that sample on the finish of final week, however the outcomes have been underwhelming.
KSM has been on an total bearish trajectory since November 2021. It bounced off its descending resistance line on 8 November, marking the beginning of its largest sell-off. The value retested the identical resistance line on 20 April earlier than the bears might lengthen their dominance. It hovered simply above the help line between 11 Could and 10 June earlier than breaking beneath, signifying help weak point.
The calm earlier than a storm
Low promoting volumes have up to now restricted KSM’s draw back, in addition to its upside. That is regardless of breaking out of the help and resistance vary. As a consequence, the worth maintained lots of sideways efficiency in the previous couple of days. KSM traded at $47.8 at press time.
Supply: TradingView
KSM’s comparatively flat efficiency has taken place regardless of the numerous accumulation indicated by the MFI. The RSI additionally registered some upside however did not push past the impartial 50 stage. The restricted worth motion displays the shortage of traders’ confidence, in addition to the prevailing market uncertainty.
Supply: TradingView
Regardless of KSM’s present predicament, a current replace from the Kusama workforce supplied insights into what they’ve been engaged on. It additionally offers insights into what to anticipate shifting ahead.
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— kusama (@kusamanetwork) June 29, 2022
The replace revealed that Kusama is growing the Kusamaverse as a metaverse infrastructure the place builders can work together and construct freely with each other. Whereas that is excellent news for Kusama’s future, the developer exercise metric signifies decreased exercise since mid-June.
Supply: Santiment
The drop within the developer exercise metric could have contributed to low traders’ confidence, therefore the low buying and selling quantity. This commentary additionally displays the truth that whales have been lowering their KSM balances. The availability held by the whales dropped to its lowest month-to-month stage at 44.16% by 29 June, confirming the lack of confidence by whales.
Is KSM poised for a restoration?
There’s a vital potential that Kusamaverse could contribute to a rise in demand for KSM shifting ahead. Nonetheless, the cryptocurrency’s worth motion remains to be closely influenced by the general market sentiments. This implies KSM’s capacity to ship any vital upside is presently pegged to the general crypto market’s restoration.
