KSM Price Prediction: Could it Retreat Further?

Key Insights:

• Short-term sentiment on KSM is bearish, while the daily simple and exponential moving averages are giving sell signals.
• KSM ranks 79th in the list of cryptocurrencies worldwide by market capitalization at $404 million. 
• In January 2021, KSM rallied from $69.5 to $237.03 in the space of 52 days. 

KSM, the native token of the public pre-production environment for Polkadot, Kusama, crashed to $45.21 yesterday, despite trading at a high of $58.34 just a few days earlier on June 26. The 22% price drop was accompanied by a 5% decline in trading volume.

Kusama (KSM) is referred to as a canary network since it serves as a nearly identical copy of the Polkadot (DOT) blockchain designed to test new features before they are released. Meanwhile, KSM is the proof-of-stake (PoS) cryptocurrency that distributes rewards for validating transactions via staking. KSM an inflationary asset with an inflation rate of 10% per year.

Price Action

KSM started its journey in December 2019 $1.9359.

The coin is currently trading at $47.82 and ranks 79th in the list of cryptocurrencies worldwide by market capitalization at $404 million.

 

On June 30, KSM was trading below the 20 and 50 simple moving average (SMA), while the moving average convergence divergence (MACD) continued to transact in the negative zone. Support was found at $40.

In May last year, KSM rose 105% from its earlier price of $303.04 set on 24 April. The surge was attributed to a listing on the world’s largest cryptocurrency exchange, Binance. Following this, Kraken listed the token and then added support for staking with a reward of 12% annually.

Prior to this, KSM had rallied from $69.5 on January 1, 2021 to an astonishing $237.03 in the space of 52 days. The uptick continued with the cryptocurrency reaching $547.91 on March 29, 2021.

The Kusama token lost over 50% of its value shortly thereafter, dropping to $262.97 on May 23. Six parachain auctions than ran from September until October 2021 raised KSM’s price to $402.99 on September 2, with a further rally taking place on November 7 to $509.62.

 

Technical Indicators

Technical analysis shows that short-term sentiment on KSM is bearish, with 0 indicators displaying bullish signals compared to 26 bearish signals at the time of writing.

The daily simple and exponential moving averages (EMA) are giving sell signals, while the relative strength index (RSI) stands at 35.7.

An RSI reading of 30 or below indicates an oversold or undervalued condition, while a reading above 70 would suggest the asset is becoming overvalued or overbought.

In terms of a Kusama crypto price prediction, KSM could see its price rising to $4.886 by August 2022, reaching $2.952 in January 2024 and hitting $1.643 by January 2025.

A more bullish forecast foresees KSM rising to $69.46 by January 2023, reaching $73.63 in January 2024 and hitting $92.63 by January 2025.