KSM Technical Analysis: End of Correction Phase With New Bull Run
Table of contents
The 35% drop in the KSM market value tests the buyers at $44, which pumps the prices by 10% overnight to challenge the resistance trendline. Moreover, the high volume reversal prepares a bullish follow-through candle ready to break above the trendline and end the correction phase. So, is it the best time to buy the Kusama token?
Key Points:
Source - Tradingview
KSM Technical Analysis
The KSM prices give a bearish breakout of the consolidation range between $57 and $67. The correction phase results in the formation of a resistance trend line in the daily chart.
The downturn within the influence of a resistance trend line moving along with the 20 days SMM accounts for a 35% drop within three weeks. However, the buyers regained trend control at $44, resulting in a 10% price jump leading to a bullish engulfing candle in the daily chart.
The bullish reversal challenges the overhead resistance trendline and projects a high possibility of a prolonged uptrend.
A bearish reversal from the downsloping trendline will encourage sellers to breach the prior monthly bottom support of $44. If they do so, the resulting downfall will slump the prices 20% lower to hit the $34 mark.
Conversely, a bullish breakdown from the resistance trendline will bolster trend reversal and allow buyers to push prices to $57.
Technical Indicators
The RSI slope reverted from the oversold region indicates the traders are active buyers at discounted prices. The MACD indicator showcases a buy signal with the bullish crossover of the fast and slow lines, supporting the bullish reversal theory.
Hence, the technical indicators maintain an optimistic outlook for the upcoming trend in KSM prices.
Resistance Levels: $50 and $57
Support Levels: $44 and $35