KSM - Parachain auctions driving reduction
Kusama is continuing to test support of the descending triangle pattern formed since March 29th.
If price continues to close below the 20MA, support could next be found at the dotted green line, approx $387.
However, the triangle indicates that a break of the green base support line could see a price target that exactly meets the 50MA at approx $330.
Considering the overall strong uptrend, a target of approx $330 might seem excessively bearish. Consider though that Kusama parachain auctions are likely beginning this month, and could be driving a lot of selling pressure to get price down for accumulation prior to the auctions beginning. The break in the original uptrend coincides with the announcement of the parachain auctions adding weight to this possibility.
If price continues to close below the 20MA, support could next be found at the dotted green line, approx $387.
However, the triangle indicates that a break of the green base support line could see a price target that exactly meets the 50MA at approx $330.
Considering the overall strong uptrend, a target of approx $330 might seem excessively bearish. Consider though that Kusama parachain auctions are likely beginning this month, and could be driving a lot of selling pressure to get price down for accumulation prior to the auctions beginning. The break in the original uptrend coincides with the announcement of the parachain auctions adding weight to this possibility.
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