Kusama’s native cryptocurrency KSM is among the digital currencies that got a massive slap down during the latest bear market. It looks like the bulls are making a comeback but can KSM promise a recovery as fast as it delivered a fall?
KSM has already experienced some upside which manifested as a 19% rally since 28 May. The price recovered from $65.20 and went to a high of $78 on 31 May.
However, this uptick can be considered as a mere recovery from its bearish performance early last week. KSM is still trading within its three-week range, even as some of the major cryptocurrencies experience price breakouts this week.
In the grand scheme of things, KSM is still trading at a massive discount compared to its all-time high of $625. The massive difference between the historic high and its current price level highlights just how far and fast it fell from the top.
Kusama’s market cap currently stands at $662 million, a far cry considering that the token had a market cap of above $5 billion at some point.
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KSM happens to be one of the coins that offers robust utility since it is necessary for projects that are looking to compete for parachain slots. It also has a low circulating supply which makes it susceptible to extreme price moves during volatile market conditions. Furthermore, KSM is heavily discounted at the moment, hence another bull run would likely yield significant upside.
Source: TradingView
KSM will eventually break out of its tight range perhaps in the next few days. In case of a bullish breakout, we should expect a retest of the $90 and $118 price levels which fall at the lowest Fibonacci retracement lines. The $118 level is more likely to yield resistance after rallying by more than 80% from its current level. This is because the same price level previously acted as support.
The social dominance and the social volume metrics both registered significant activity in the last 24 hours. The last time that such an increase in social volume and social dominance was recorded was between 10 and 11 May, when it neared the bottom.
Source: Santiment
While increasing dominance means KSM is receiving more attention, it looks like its market cap has also grown significantly since 27 May. Additionally, the supply of KSM held by whales bottomed out at 46.35% on 21 May but it has since then increased to 47.10%.
Source: Santiment
Thus, it seems the whales are stacking up on KSM and market conditions are improving. The odds are in favor of more upside, and perhaps KSM is due for an explosive comeback.
