Kusama (KSM) Price Analysis: Should You Sell?

In focus | Kusama Logo Kusama $KSM
Kusama (KSM) Price Analysis: Should You Sell?

In Brief

  • The price of Kusama (KSM) has tanked to $51.71, down by -16% over the past 7-days.

  • For comparison, the market overall is down by -5.1%.

  • 6 previous historical occurrences of the takuri candle indicator suggest that prices could be headed lower.

Kusama has collapsed sharply recently, and unfortunately for investors historic price movements suggest that the market is heading lower.

We don't know exactly what the future will hold, but we can analyze what happened in the past. Stack looked over the past indicators for Kusama (KSM) under similar conditions to try and calculate future price action.

Specifically, we analyzed 6 previous occurrences where the takuri candle was detected, this is what we found.

Why Kusama's Price Could Move Lower

Essentially, due to several similar occurrences in the past. In other words, we have seen this situation play out before.

Over 6 past occurrences, we found that 100% of the time the price increase by a median -25.27% over the following 30 days.

For example, on February 3rd, 2022 we saw the indicator and a price move of Kusama move by 0%, only to then move by -24.7% over the following 30 days.

Kusama chart

Chart shows the historic occurrences of this indicator with the price.

What does this mean for investors?

Investors need to consider that this is just one indicator. Lots of factors can affect the price.

Crypto prices are influenced by social media, developer activity, the number of exchanges and on-chain activity. All of these factors are factored in when Stack ranks crypto assets.

{If you believe that other factors, including the broader crypto market, are favorable assuming the suggested 7-day holding period. Then it might be a good trade, or a good entry point for longer term investors. We recommend that you do your own research (DYOR) before making any investments. |It's critical to before making any investments. Crypto is highly volatile, and other factors, like the broader crypto market, are likely to influence prices. Always DYOR before jumping in.

What else could be moving the price?

Lot's of factors can affect the price of any investment. These are just a few that could impact the price of Kusama.

The entire crypto market's direction

The broader market is also down by a median -5.1%. Most cryptos are correlated, especially to Bitcoin. So this is likely affecting the price.

Project developments

How active have the developers for Kusama been?

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

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

Social activity

Social media can have a substantial impact on crypto prices. Even a single tweet can move markets.. It can be hard to judge sentiment just by browsing Twitter, but you can use products like Stack to monitor the growth of a project's followers.

Kusama's Twitter followers have risen by 0% over the past 7 days. You can view stats for other networks in the full report for Kusama.

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