Kusama [KSM] explodes 119% in one day – How DOT helped

• KSM simply skilled a serious breakout after beforehand favoring the bears for many of 2024.
• A take a look at the components that contributed to the corporate’s explosive comeback.

Kusama [KSM] native cryptocurrency simply staged a last-minute rally that vaulted it into the checklist of high gainers this previous week. This is a take a look at how issues performed out, paving the best way for KSM’s latest benefit.

KSM had beforehand struggled to safe a robust bullish base whereas some cryptocurrencies hit new highs.

2024 was a bearish 12 months for probably the most half, though the 12 months did begin with some bullish exercise. This induced the value to rise to $61.11 in mid-March, adopted by a bearish takeover.

The cryptocurrency fell to $13.85 in August and has struggled to depart the low vary. This was evident from the bottom value up to now this month, which was $14.71.

Nonetheless, consolidation has occurred since then, however the greatest good points occurred throughout Saturday’s buying and selling session.

KSM posted a 119.68% achieve on November 23, from $23.09 to $52.20. This formally marked the most important single-day achieve in 2024.

Supply: TradingView

KSM was exchanging palms at $44.72 on the time of writing, indicating some profit-taking. At its latest excessive, the value was additionally deep in overbought territory.

Analysis of the components that play a task within the KSM rally

The primary main cause for the rally was liquidity rotation. Bitcoin [BTC] Dominance fell from a weekly excessive of 61.53% to a low of 58.35%.

This dip induced liquidity to circulation into altcoins and the Polkadot [DOT] ecosystem was a wonderful candidate.

The rally initially began with DOT rallying over 50%. Since Kusama is intently related to Polkadot, the corporate benefited from the inflow of liquidity.

It additionally helped that KSM was nonetheless comparatively undervalued, making it a sexy candidate for a lot of traders.

KSM was among the many high 50 cryptocurrencies by market capitalization through the earlier bull run in 2021. Its value rose as excessive as $624 in 2021, therefore the notion that it was closely undervalued lately.

However how far can this cryptocurrency go?

Learn Kusama’s [KSM] Value forecast 2024–2025

In line with DeFiLlamaKSM token quantity elevated to as excessive as $1.36 billion previously 24 hours. This was the best stage of exercise the community has achieved previously three years.

Supply: TradingView

For context, the earlier excessive for KSM quantity in November was $49 million. Nonetheless, it stays to be seen whether or not the community will keep quantity at or close to latest highs.