The price of KSM has bounced off the horizontal support and seems to be consolidating near the 50 SMA.
Kusama (KSM) has been trading higher over the past 24 hours after a somewhat slow weekend, with KSM’s price up 6.4% and at the time of writing this article at around $ 339.
Kusama’s upswing comes as markets generally recover after news from China pushed most coins down.
Kusama, which is available on most major exchanges, is experiencing significant buying pressure following the integration of KSM staking into the Guarda wallet. Now investors can be rewarded for staking their KSM Coins as the growth of the decentralized financial market (DeFi) continues to attract more people.
KSM Price development
At Kusama, bulls are hoping for a rebound towards an ascending trend line, below which a key support zone is around $ 302.
A look at the KSM token on the 4-hour chart shows an indication of a positive continuation, with prices likely to move towards recent highs in the $380 to $420 range.
The Relative Strength Index (RSI), which is above the neutral line, shows that the KSM/USD pair could break out to the top.
A continuation of the upward movement would be a sign of bullish strength, which is currently supported by the MACD’s bullish crossover. While the indicator remains in negative territory, the rising histogram above the zero line indicates further growth of the price in the coming weeks.
A daily closing price above $ 344 (50 SMA) would highlight $ 350, $ 380, and $ 400 as key targets.
KSM / USD 4-hour chart. Source: TradingView
However, an opposite picture would emerge if there was a rejection at the key hurdle near the $ 50 ($344) simple moving average on the 4-hour chart. A re-test of horizontal support at $ 302 would hold out the prospect of a descending triangle pattern.
This is a bearish continuation pattern that, if confirmed, could see prices fall by $ 274 until the next demand zone. If the downward movement continues from here, there could be a potential recharge zone at $ 243.