Kusama price analysis: KSM bounces off major support as bulls target more gains

Kusama price analysis: KSM bounces off major support as bulls target more gains

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KSM price has rebounded off horizontal support and is looking to strengthen near the 50 SMA

Kusama (KSM) has traded higher over the past 24 hours after a slightly slow weekend, with KSM price up about 6.4% to change hands around $339 at the time of writing.

The uptick in momentum for Kusama comes as the broader markets look to bounce after China-related news pushed most coins down.

Kusama, available on most major exchanges, is seeing significant buy pressure following the integration of KSM staking on the Guarda Wallet. Now investors can get rewarded for staking their KSM coins as growth across the decentralised finance (DeFi) market continues to attract more people.

KSM price outlook

For Kusama, bulls are looking to recover towards an ascending trendline below which lies a major support zone around $302.

Looking at the KSM token on the 4-hour chart, we see a hint of a positive continuation, with prices likely to move towards recent highs in the $380 to $420 range.

The KSM/USD pair is looking to break higher as shown by the Relative Strength Index (RSI) cutting above the neutral line.

An upward continuation would signal bullish strength, currently being aided by the bullish crossover of the MACD. While the indicator remains in the negative zone, the increasing histogram above the zero line suggests further growth for Kusama's price over the coming weeks.

A daily close above $344 (50 SMA) would highlight $350, $380, and $400 as the main targets.

KSM/USD 4-hour chart. Source: TradingView

The contrary picture would however begin to present if there's a rejection at the key hurdle near the 50 simple moving average ($344) on the 4-hour chart. A retest of the horizontal support around $302 would bring into perspective a descending triangle pattern.

This is a bearish continuation pattern whose validation could see Kusama price decline to the next demand zone around $274. If the breakdown continues from here, a potential reload zone might materialise at $243.