Let the Canary Fly! Bullish on KSM.I've never been more bullish on Kusama (KSM). For those of you not familiar with the Polkadot ecosystem, Kusama is Polkadot's wild cousin or its canary network. Basically, Kusama has nearly the same codebase as Polkadot, but the main purpose of KSM is to be the proving ground for projects before they can deploy on Polkadot, kind of like a test network. For full comparison, you can check out this article: polkadot.network
Why I trade/invest in Kusama? (doesn't necessarily mean you should too, none of this is financial advice)
Fundamental Analysis:
-Parachain Auctions are coming. This will cause an increased demand once the auction starts and also a supply shock since the projects are required to lock those KSM up. (This is too long to fully explain so DYOR on this. There are videos on Youtube that provide simple explanations about parachain auctions.)
-If you're bullish on Polkadot, you have to be bullish on KSM too. A robust DeFi ecosystem, that could be up to par with Ethereum's, has already started building on both.
-Had higher ROI so far compared to it's cousin Polkadot. My guess is some people have only started to realize just how important KSM really is to the DOT ecosystem, rather than just a simple test network.
-Has a lower circulating supply and inflation rate. KSM has 8,980,098 circulating tokens compared to DOT's 996,120,387; and has an annual inflation rate of ~10% compared to DOT's ~12%. Some sites like Coingecko say it has a max supply of 10M, but I couldn't find an official source for that though.
Technical Analysis:
By looking at this log chart, we can see that KSM has respected this ascending channel ever since. The upper trendline has acted as strong resistance and we've only seen a fakeout once before its recent all-time high, while the lower trendline has been acting as strong support and just recently got tested again as support during this correction. I expect for KSM to have another go at the upper trendline within the next couple of weeks.
Additional bullish indicators:
-We could clearly see a hidden bullish divergence which is a bullish continuation indicator. (green lines)
-21W SMMA acted as support and we are currently trading above the 21W EMA. A close above 21W EMA this week will make it even more bullish.
That's all I have for now, and as Kusama's taglines go: "No promises. Expect Chaos."
Good luck on your trades!
