Kusama price could double based on on-chain metrics but faces short-term pressure
- Kusama price had a 50% rally in the past week hitting a high of $68.89.
- Several on-chain metrics indicate the digital asset is poised for a long-term rally.
Kusama is currently ranked 45th by market capitalization at $600 million and it’s up by 5,500% in the past year hitting an all-time high in the past 24 hours at $68.89. The digital asset is one of the best performing altcoins in 2020.
Kusama price should rise based on demand vs supply
One of the most critical on-chain metrics for Kusama is the fact that around 90% of the total supply is already in circulation which means inflation will be minimal. Additionally, more than 50% of the tokens are staked which diminishes selling pressure.
$KSM
— Polkadot XO (@Trader_XO) December 31, 2020
Almost 90% of the circulating supply is out there.
See no reason why this won’t be 3 figures in 2021 pic.twitter.com/UDZBxU0sMO
In the long-term, it seems fairly possible for KSM to reach $100 as there is basically no resistance ahead of the current price, considering it just established a new all-time high. However, there are some concerning signs in the short-term.
KSM/USD 6-hour and 12-hour charts
On the 12-hour chart, the TD Sequential indicator has presented a sell signal and it’s about to do the same on the 6-hour chart within the next three hours. If both calls get enough continuation, we could see Kusama price dip towards $60.
%20[15.44.41,%2031%20Dec,%202020]-637450227099440468.png)
KSM Trading Volume chart
On top of that, the trading volume of Kusama has spiked significantly over the past 24 hours, which has been an accurate indicator of tops in the past. It happened on October 26 and September 2. This metric seems to give credence to the bearish outlook above.
Author
Lorenzo Stroe
Independent Analyst
Lorenzo is an experienced Technical Analyst and Content Writer who has been working in the cryptocurrency industry since 2012. He also has a passion for trading.
