Kusama (KSM) was among the digital tokens that took a massive hit following the latest market-wide fall. Bulls appear to resurge, but can the altcoin ensure a swift recovery after the quick downward move? KSM already recorded an upside move, gaining 19% since May 28.
The bullish action saw prices recovering from $65.20 to climb towards the $78 highs on May 31, 2022.
Nevertheless, the upsurge was a drop in the ocean, considering last week’s KSM’s bear action. The altcoin remains inside its 3-week range, despite some large-cap cryptos witnessing breakouts early this week.
Furthermore, KSM still trades at a colossal discount from its $625 ATH. The massive gap between the current price and the lifetime highs shows how far and quick KSM plunged from its peaks.
For now, its market capitalization hovers at $662 million, a discouraging figure considering the alt once exhibited $5 billion in market cap.
Should You Prepare for a ‘Moon’ Move?
KSM is among the tokens that offer enormous utility, a necessary factor for a project ready to race for parachain slots.
Moreover, it boasts a lower circulating supply, making it vulnerable to immense price fluctuations amidst volatile market situations. Kusama trades at massive discounts. That means another bullish run would trigger a substantial surge for the altcoin.
The token will likely overpower its constricted range in the coming few days. A bullish breakout would see KSM retesting the price levels at $90 and $118, zones at the lowest FIB retracement lines.
Meanwhile, the alt could witness some resistance near $118, following an over 80% surge from current price levels. That’s because this area previously served as a support barrier.
The social volume and social dominance indexes saw substantial activity within the past 24 hours. These metrics have never witnessed such increases since May 10 and 11, after Kusama neared its bottom.
As increasing dominance showed KSM receiving additional attention, the market cap seems to grow exponentially since May 27. Moreover, KSM whale supply bottomed at $46.35% on May 21 before increasing to 47.10%.
Therefore, whales appear to join Kusama, with market conditions improving. The altcoin has a massive upside potential that could yield an explosive revival.
Editorial credit: Ira Lichi / shutterstock.com