Why is Kusama (KSM) crypto trailing today?

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Why is Kusama (KSM) crypto trailing today?

 Why is Kusama (KSM) crypto trailing today?
Image source: © Transversospinales | Megapixl.com

Highlights

  • Kusama (KSM) crypto is an experimental proof-of-stake network that utilises the exact coding mechanism, which is used by the Polkadot Network to achieve a scalable and interoperable sharded network.
  • Also dubbed the Canary Network, Kusama uses Polkadot ecosystem by acting as a warning mechanism, thereby helping it detect threats that may threaten the network's stability.
  • KSM crypto, at the time of drafting, was trading at US$67.37 with a trading volume of US$7,01,42,591 over a day.

Kusama (KSM) crypto is an experimental proof-of-stake network that utilizes the exact coding mechanism, which is used by the Polkadot Network to achieve a scalable and interoperable sharded network.

Also dubbed the Canary Network, Kusama uses Polkadot ecosystem by acting as a warning mechanism, thereby helping it detect threats that may threaten the network's stability. Working as a testnet, the Kusama protocol conducts several tests before launching the parachains on the Polkadot ecosystem.

On Tuesday, Kusama crypto was continuing its downward slide, which has been on for more than a month. On 7 June, KSM crypto was trailing by over 6%. 

Related read: Why did UNFI Protocol DAO (UNFI) crypto zoomed by 26%?

Why is KSM crypto trailing? 

KSM crypto's fall was primarily due to the market crash in May. KSM crypto has lost almost 81% of its value ever since it achieved its all-time high of US$621.71 in May 2021. Though the KSM did manage to recover a bit of its value during its 19% rally on 28 May, that soon fizzled out. Over the past week, it has been trailing by 13.4%. 

A quick look at the following chart would indicate that the market participants should adopt a wait-and-watch approach with the mixed spree of selling and buying during intraday trading. The RSI stood at 36.40 during the intraday.  

Image Credit: Trading View

Even the MACD indicates that though the MACD line (in blue) has its nose ahead, the signal line is soon catching up. Having said that, the market's volatility rate – RVI – is above the neutral zone to be placed at 51.96.  

Kusama, which works on the designated nominated Proof-of-Stake (NPoS) consensus, would hope it can perhaps cash in on the Kusamaverse, which was launched on 24 May.

Related read: Solana NFT sales hit an all-time high of US$2 bn. Points to note

How is Kusama's price faring?

KSM crypto, at the time of drafting, was trading at US$67.37 with a trading volume of US$7,01,42,591 over a day. The token was down by 6.46% in the last 24 hours, with a live market cap of over US $57,06,14,950 and a total supply of 9,651,217 KSM coins.

But the token was witnessing a minor volume rally of 23.40%, indicating that investors in the market are interested in the token.

Many believe that the Kusama crypto is still in the crypto winter phase and believe that despite the lull at present, it can quickly turn bullish with a rally. But whatever is the situation, investors need to do their market research before entering the crypto market.

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