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Kusama (KSM/USD) was down over 3% on Tuesday even though most of the other currencies were trading in green. KSM was up over 13% last week and this week could be the pullback before it sets a new all-time high. Should you buy the dip in the KSM?
A look at this year’s charts-
- After testing the resistance at $385 multiple times KSM gave a strong breakout on Sunday and is now retesting the $385 level on Tuesday.
- If KSM can sustain above $385 a new all-time high should be hit in the coming weeks as the retest will eliminate any false breakout fears.
- Before taking a long entry it is important that investors wait for a clear reversal, as an early entry could cause investors to get trapped in a false breakout.
- A reversal is expected around $386, investors can take a long entry once KSM reverses and resumes its rally.
- If a successful retest is seen a new all-time high should be hit in the coming weeks and investors can also hold small quantities for higher targets.
- In case a breakdown is witnessed, a stop-loss can be maintained at $360.
Is it time to enter KSM on Tuesday?
- A bullish divergence was formed on Tuesday, this is indicating towards a reversal, however, KSM could still fall to the level of the demand zone at $386 thus investors can start entering in small parts.
- KSM also has a demand zone at $390, it could also reverse from that point.
Conclusion
KSM is making a perfect structure- a breakout with a retest which could yield investors some great returns. Nevertheless, investors must wait for the right time to enter and should not enter without a clear reversal as they could get caught in a false breakout. Investors can expect a new all-time high once a clear retest is seen.
The post Should you buy KSM after the pullback on Tuesday? appeared first on Invezz.
Disclaimer
The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.