- KSM just experienced a major breakout after previously favoring the bears for most of 2024.
- A look at the factors at play that have contributed to its explosive comeback.
As a researcher with years of experience in the cryptocurrency market, I have to admit that the recent surge in Kusama (KSM) has left me quite intrigued. After favoring the bears for most of 2024, this sudden comeback is a fascinating turn of events.
Recently, the native cryptocurrency of Kusama (KSM) experienced a late surge in value, which catapulted it into the league of significant weekly gainers. Let’s examine the events that transpired to explain its recent price increase.
Previously, KSM found it challenging to establish a robust upward momentum, contrasting with certain cryptocurrencies that were hitting record highs.
2024 started off showing some bullish tendencies, even peaking at $61.11 around mid-March. However, the majority of the year has been dominated by bearish trends.
In August, the value of the cryptocurrency plunged to a record low of $13.85 and has found it challenging to break free from its depressed range. This struggle became apparent with its lowest recorded price for this month at $14.71.
Nevertheless, consolidation has continued since that time, yet it was during the trading session on Saturday that the largest increases were realized.
On the 23rd of November, KSM experienced an impressive surge, increasing by approximately 119.68% and climbing from $23.09 to $52.20. This significant increase represents KSM’s largest one-day gain recorded in the year 2024.
At the moment of reporting, KSM was traded at $44.72, suggesting some investors were cashing out their profits. Additionally, it had reached an overextended level, being deeply overbought during its highest point recently.
Evaluating factors at play in the KSM rally
“The primary cause behind the recent surge in value was a shift in liquidity, as evidenced by a decrease in Bitcoin‘s [BTC] dominance from its weekly peak of 61.53% to a low of 58.35%.
As a result of this dip, altcoins attracted an influx of liquidity, and the Polkadot [DOT] system stood out as a particularly promising candidate.
The rally initially kicked off with DOT, which rallied by over 50%. Since Kusama is closely associated with Polkadot, it benefited from the liquidity inflows.
Additionally, the fact that KSM was still considered underpriced made it a compelling choice for numerous investors.
In the past bull market of 2021, KSM ranked among the top 50 cryptocurrencies by market capitalization. The value of KSM peaked at a staggering $624 in the same year, leading many to believe that it was significantly underestimated in current terms.
But just how far can this cryptocurrency go?
Read Kusama’s [KSM] Price Prediction 2024–2025
Based on data from DeFiLlama, the trading volume of KSM tokens reached an impressive peak of $1.36 billion over the past day. This is the highest level of activity the network has experienced in the last three years.
Previously, the KSM volume peaked at around $49 million in November. It’s uncertain if the network can sustain its current high volumes, which are close to the peak levels.
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2024-11-24 19:03