Kusama recorded massive declines within the past couple of months as the broad market escalated losses this year. However, KSM might be reading for price shifts as its price moments within the past few months show.
The Kusama network flourished at a healthy speed, though KSM price trends are yet to reflect the growth. The native coin has maintained bearish tendencies. Nevertheless, the alt might be ready to change such projections. Analyzing KSM’s price charts shows the three-day timeframe depicting a falling wedge setup and the token traded inside this pattern since 2021.
A declining wedge formation often comprises lower lows, and experts consider it a bullish breakout precursor. The resistance and support levels in Kusama’s wedge formation currently converge. Meanwhile, the price enters a constricted range squeeze, increasing the breakout probability.
Kusama’s historic tendencies show the alt records a significant bounce-back following a support line touch. Nevertheless, KSM’s latest interaction failed to unveil similar outcomes as it depicted faded buying pressure. Such a result isn’t surprising considering the current market situation.
Will Kusama See Upside Breakout?
A declining wedge pattern plus lower lows should trigger a bullish breakout. KSM is currently trying to revive from the oversold situation, supporting the upside narrative. Also, bears seemed to lose momentum, as the DMI depicted.
On the other side, the Money Flow Index created a higher peak versus the price’s lower lows compared to the past dip. That means distribution was lower during the recent fall than in the past.
Kusama indicators appear to match conditions essential for massive accumulation plus bullish recoveries. Nevertheless, that doesn’t guarantee a bearish end. Moreover, the market isn’t always forthright.
The broad crypto space struggled to recover from recent crashes, and bears could be unprepared for surrender. Sideways performances from KSM within the past couple of days signaled inadequate buying strength to support significant recoveries. That shows whales are yet to start accumulating following the recent crash.
Final Thought
The slight market cap increase within the past few days shows retail accumulation following the latest crash. It seems like ‘smart’ and institutional money sizes the market while exercising care. Though recoveries appeared overdue, the prevailing market conditions indicate downside risks before a sustained recovery.
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