- Kusama rallied to highs of $73.85 on Wednesday but failed to sustain the gains, leading to a reversal to $40.
- KSM/USD could remain pivotal at $50 following a shallow recovery supported by the Ichimoku cloud.
Kusama is among the best-performing cryptocurrency in the market, especially if August is taken into consideration. Moreover, the massive bullish action seems to have extended into the first week of September owing to the fact that KSM rallied to $73.85 on Wednesday.
The spike above $70 was incredible but not sustainable. Kusama formed a long candle wick that led to a sharp decline to levels just above $40. Intriguingly, the price remained above the Ichimoku cloud which gave the crypto a boost, leading to a comeback that has been able to above $50.
At the time of writing, KSM is dealing with higher seller congestion at $50 while exchanging hands at $49.93. The price is likely to remain pivotal at $50 owing to the fact that the Relative Strength Index (RSI) leveling slightly above the midline.
Related reading: Bitcoin Price Analysis: BTC/USD Slump Under $11,000 Seems Inevitable
KSM/USD 1-hour chart
Consequently, staying above the Ichimoku cloud gives buyers hope that recovery is still possible. In this case, buyers must capitalize on the consolidation to create more entries and volume for gains above the next hurdle at $60. This will curve a path for Kusama to advance to higher levels above $70.
For now, establishing support above $50 remains key among the bulls. However, in the event buyers are overwhelmed, a myriad of support levels exist at $40, the 100 SMA ($36.6), $30 and the primary buyer congestion zone at $20.
Kusama Intraday Levels
Spot rate: $50.05
Relative change: -5.47
Percentage change: -9.35
Trend: Short term bearish bias