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- KSM is coming off a major breakthrough after favoring the bears for most of 2024.
- A look back at the factors at play that contributed to his explosive comeback.
The native cryptocurrency Kusama (KSM) just completed a last-minute rally that propelled it into the list of top gainers last week. Here’s a look at how things played out, setting the stage for KSM’s recent rise.
KSM had previously struggled to secure a solid bullish base, while some cryptocurrencies reached new highs.
2024 was essentially a bearish year, although it started the year with some bullish activity. This saw it rally as high as $61.11 in mid-March, followed by a bearish takeover.
The cryptocurrency fell to $13.85 in August and is struggling to break out of the low range. This was evident by its lowest price so far this month, which was $14.71.
However, some consolidation has taken place since then, but the biggest gains occurred during Saturday’s trading session.
KSM made a 119.68% gain on November 23, rising from $23.09 to $52.20. This is officially his biggest single-day gain in 2024.
Source: TradingView
KSM was trading at $44.72 at press time, indicating there was some profit taking. It was also deep in overbought territory at its recent high.
Evaluating the factors at play in the KSM rally
The first major reason for this rebound was cash turnover. Bitcoin (BTC) dominance fell from a weekly high of 61.53% to a low of 58.35%.
This decline led to an influx of liquidity into altcoins, and the Polkadot (DOT) ecosystem was a prime candidate.
The rally initially started with DOT, which rose more than 50%. Since Kusama is closely associated with Polkadot, it has benefited from the liquidity inflows.
The fact that KSM is still relatively undervalued has also helped make it an attractive candidate for many investors.
KSM was one of the top 50 cryptocurrencies by market capitalization during the previous bull run in 2021. Its price surged as high as $624 in 2021, hence the perception that it has been heavily undervalued. recently evaluated.
But how far can this cryptocurrency go?
Read Kusama (KSM) Price Prediction 2024-2025
According to DeFiLlama, KSM token volume surged as high as $1.36 billion in the last 24 hours. This is the highest level of activity the network has reached in the last 3 years.
Source: TradingView
As a reminder, the previous highest level of KSM volume in November was $49 million. However, it remains to be seen whether the network will maintain volume at or near recent highs.
