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Market analysts noted that the rate of the Kusama cryptocurrency has grown by 25% over the past 4 days, as of June 1, 2022, starting from the key support level. They advised traders not to rejoice ahead of time, as the chart states that the virtual asset is under pressure from bears, despite signs of a reversal.
Experts noted that interest in the project is due to the fact that users demonstrate a high demand for the interoperability of blockchain networks. Kusama is a fast-growing platform with a good potential and that is why it attracts the attention of users who want to join the scalable infrastructure.
According to some experts, Kusama is one of the most efficient blockchain chains in the industry. They noted that the rapid growth of the exchange rate is short-term and corresponds to general trends. The increase in the cost of KSM is nothing more than a correction. In the long term, analysts recorded a downward trend and noted no signs for a global price reversal. The only positive factor was a sharp surge in trading volumes.
According to technical analysis, Kusama entered a long-term downtrend back in December 2021. Then KSM lost almost 50% of the peak value of $ 623, reached in May of the same year. Then the rate of the digital asset fell by another 75%, coming to the price level of early 2021.
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Analysts noted that the reversal on the chart could have occurred in March 2022, when KSM broke through the 50-day moving average (SMA), almost reaching the next resistance level. However, this did not happen. The rate went back under the downtrend range. As of 19:00 Moscow time on June 1, 2022, the asset is trading at $78.82
Earlier, the editors of the Crypto.ru reported: analysts assured that Polkadot and Kusama were in the oversold zone.