After rising over 250% in the past three weeks, KSM has fully recovered from its lows to an eight-month high. Although the intraday trend remains bullish, it failed to maintain pressure and thus lost control.
At the start of this month, KSM was weak due to the drop at the end of October, but successfully formed support above 15 USD and regained momentum. The stock rose for a week and paused buying after being rejected. After a three-day decline, the stock rebounded and formed a high and higher high pattern.
This pattern led to a major breakout on Friday, with prices surging to 52 USD yesterday. Bulls reiterated their action today, pushing up to 53.5 USD, but failed to maintain momentum due to sudden sell-offs.
Meanwhile, yesterday's surge marked the highest single-day purchase volatility trading day in cryptocurrency history. This single trading day alone triggered a shocking 120% single-day increase, characterized by engulfing candles.
Yes, from a technical standpoint, the bulls have completely regained control of the market. However, given this surge (which is typically followed by a large-scale sell-off), cryptocurrency may experience a broader pullback phase before regaining upward momentum.
From the daily chart, KSM is significantly retracing its gains as it seeks a solid foundation to trigger a new rise. Once support is found, we can expect buying to resume at full speed.
Key levels of KSM to watch
Source: Tradingview
If KSM recovers from the current decline, it must reclaim 45 USD and the daily rejection of the 53.5 USD high. If the price breaks through, 61.2 USD is the next resistance level to watch.
The current key support level is at 33.6 USD. If a rebound fails, the lower support levels will be 26.8 USD and 22.7 USD. If there is further decline, the support level is at 19.45 USD.
Key resistance levels: 45 USD, 53.5 USD, 61.2 USD
Key support levels: 33.6 USD, 26.8 USD, 22.7 USD
Spot Price: 38.5 USD
Trend: Bullish
Volatility: High
