Kusama (KSM) Has Potential Upside of 8.23% Based on History

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Kusama (KSM) Has Potential Upside of 8.23% Based on History

In Brief

  • The price of Kusama (KSM) has cratered to $85.32, down by -22% over the past 7-days.

  • For comparison, the entire market is down by -9.4%.

  • Historic events suggest that there could be upside potential.

Kusama has cratered sharply recently (now $85.32), but previous patterns suggest that there may be upside potential in the future.

We can't predict the future, but we can analyze what happened in the past. Stack analyzed the previous performance of Kusama (KSM). Analyzing 19 historic occurrences where the price fell sharply over a period of 7-day.

Why Kusama's Price Might Be Moving Move Higher

Essentially, because of several similar occasions in the past. That is to say, we have seen this situation play out before.

Over those 19 past occurrences, we found that 78.95% of the time the price increase by a median 8.23% over the following 14 days.

For example, on August 26th, 2021 we saw the price of Kusama fall by -15.4%, only to rebound by 40.6% over the following 14 days.

What does this mean?

This is just one, data-driven signal, based on a handful of previous periods. Many of factors can affect the price of any investment.

Crypto is no different. Social media, developer activity, the number of exchanges and on-chain activity are all factors that can influence the price of any crypto project. Stack factors all these into it's ranking system to make it quick to compare the quality of different cryptos.

If you feel that other factors, including the broader crypto market, are favorable given the suggested 7-day investment horizon. Then it could represent a good time to invest, or a good entry point. We recommend that you do your own research (DYOR) before making any investment decisions.

What else could be moving the price?

As mentioned above, several factors can influence the price of any investment. Here are some that Stack can help you track.

The broader market's movements

The crypto market is also down by a median -9.4%. Most cryptos are highly correlated, especially to Bitcoin and Ethereum. So this is likely affecting the price. Going against the grain can work, but should be done with caution.

It's also work paying attention to the broader macroeconomic conditions. As crypto investing becomes more mainstream, it is increasingly becoming correlated to stocks as well.

Developer activity

How active have the developer for Kusama been?

Over the past 4 weeks there have been 0 commits on Kusama's Github account. This compares to an average of 0 commits per week.

Spotting significant changes in developer activity can highlight potential new products being worked on and abandoned projects that might be in decline.

Social activity

Social media can have a powerful effect on cryptocurrency prices. Even a single tweet can move markets (we're looking at you Elon). It's difficult to gauge sentiment just by scrolling, but you can use tools like Stack to monitor the growth of a project's followers.

Kusama's Twitter followers have increased by 1% over the past 7 days. You can view stats for other networks in the full report for Kusama.

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