TradeCityPro | KSM: Accumulation or Breakdown Ahead?👋 Welcome to TradeCity Pro!
In this analysis, I want to review KSM for you. This project is one of the platforms within the Polkadot ecosystem and currently ranks 157th on CoinMarketCap with a market cap of $289 million.
📅 Weekly Timeframe
On the weekly timeframe, we observe a consolidation zone ranging from $15.36 to $55.85. The price has been fluctuating within this range for over two years. By comparing the weekly chart with Bitcoin’s chart, we can see that the KSM/BTC pair is in a downtrend, making it currently not a good buy against Bitcoin.
🔍 However, if we analyze this chart independently, if the price bounces off the $15.36 support and starts moving upward, we can consider buying if it breaks out of the upper box limit. In that case, we can confirm that this two-year range was an accumulation zone, leading to a long-term bullish trend.
📊 The buying volume within this range has been higher than selling volume, which can be a positive sign for buyers and increases the chances of an upward breakout. However, the bullish legs have been relatively short-lived, while the bearish legs have followed more technical and structured movements.
🚀 If the price breaks out of the range to the upside, the technical targets would be $177.68 and $530.43. This means a significant amount of capital would need to enter this coin, which seems unlikely at the moment.
❌ On the other hand, if the price breaks below the range, there will be no significant support left, and we will need to see where the new historical bottom forms.
📅 Daily Timeframe
On the daily timeframe, as you can see, the price failed to reach the upper boundary of the range at $60.88 during its last bullish leg and got rejected at $51.21, initiating its downtrend. The price has since moved within a descending channel, approaching the bottom of the range.
✅ Yesterday's candle was heavily rejected from the mid-line of the channel, engulfing all recent candles from the past few days. This indicates strong selling pressure, which could initiate a much deeper downtrend.
📉 If the price breaks below the channel, the downtrend momentum will intensify, potentially leading to a parabolic bearish move for KSM. The key trigger level for confirming a parabolic downtrend is $16.08, and if this level is breached, we can expect a new bearish phase.
🧩 However, if the price breaks above the channel, the current breakout trigger is $22.37. A break above this level could be a buy signal for a long position.
📝 Final Thoughts
This analysis reflects our opinions and is not financial advice.
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