contributor
Posted:
- 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.
Kusama [KSM] native cryptocurrency just pulled off a last minute rally that propelled it into the list of top gainers this past week. Here’s a look at how things played out, paving the way for KSM’s recent upside.
KSM had previously struggled to secure a strong bullish footing, while some cryptocurrencies were reaching new highs.
2024 has for the most part been a bearish year, although it did kick off the year with some bullish activity. This saw it rally as high as $61.11 in mid-March, followed by a bearish take-over.
The cryptocurrency fell as low as $13.85 in August and has been struggling to exit the low range. This was evident by its lowest price point so far this month, which was $14.71.
However, consolidation has been taking place since then, but the biggest gains occurred during Saturday’s trading session.
KSM pulled off a 119.68% gain on the 23rd of November, rallying from $23.09 to $52.20. This officially marked its biggest single-day gain in 2024.
Source: TradingView
KSM exchanged hands at $44.72 at press time, indicating that there was some profit-taking. It was also deep in overbought territory at its recent peak.
Evaluating factors at play in the KSM rally
The first major reason for the rally was liquidity rotation. Bitcoin [BTC] dominance dropped from a weekly high of 61.53% to a low of 58.35%.
This dip resulted in liquidity flowing into altcoins, and the Polkadot [DOT] ecosystem was a prime 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.
It also helped that KSM was still relatively undervalued, thus making it an attractive candidate for many investors.
KSM was one of the top 50 cryptocurrencies by market cap during the previous bull run in 2021. Its price soared as high as $624 in 2021, hence the perception that it was heavily undervalued recently.
But just how far can this cryptocurrency go?
Read Kusama’s [KSM] Price Prediction 2024–2025
According to DeFiLlama, KSM token volume soared as high as $1.36 billion in the last 24 hours. This was the highest level of activity that the network has achieved in the last 3 years.
Source: TradingView
For context, KSM volume’s previous highest level in November was $49 million. However, it remains to be seen if the network will maintain volume at or near the recent highs.
