This year has been a poor start for KSM following an ongoing massive sell-off in the overall crypto space. Despite losing more than half of its price in the last two weeks, it has initiated more drops today.

After breaking out in late December, KSM witnessed a massive surge in volatility and touched $64.5. It failed to push higher and ended the short-term rally with a sharp rejection.

A buying exhaustion set into the market and the price declined daily. The bears took advantage of the exhaustion and initiated more pressure for the rest of that month. 

The bearish actions crossed over into the new year and the price slipped to $35 last week. After a sharp recovery, the price started to drop again. Things are now looking uglier following a series of drops in the past few days. If things get worse in the coming days, the price may dip to $30. 

While KSM continued to suffer a huge loss in the past few weeks, more than $100 million has been wiped out from its market cap. A bigger loss should be expected if the selling volume increases by the day. 

However, it has bounced slightly off last week’s low a few hours ago. If that low holds as support, we may see a notable recovery in the next few days. If not, the price will keep falling until it finds solid support.

KSM’s Key Level To Watch

Source: Tradingview

The $38 level currently supports the market. A daily close below the $35 level could trigger more selling to a low of $33.3 before extending bearish to $28.5. 

The price has recovered slightly in the past hours. If we see more push, $44 would be an immediate resistance level to keep in mind for an increase. Higher resistance levels are $50 and $55.

Key Resistance Levels: $44, $50, $55

Key Support Levels: $38, $33.3, $28.5

Spot Price: $40
Trend: Bearish
Volatility: High

Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.

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Filed under: Bitcoin - @ January 9, 2024 12:20 pm