The Kusama price took off on Thursday as investors reflected on the upcoming parachain auction. The KSM price jumped to a high of $368, which is about 20% above the lowest level this week. This brings its total market capitalisation to more than $3.15 billion, making it the 52nd biggest cryptocurrency in the world.
Kusama is a blockchain project run by the same team that runs Polkadot. The network is usually the launchpad for all projects that run in Polkadot’s network. It is at this stage that many users test the projects and identify bugs before they move to Polkadot.
The Kusama price is rising after the developers announced the date for the much anticipated parachain auctions. The process will start on November 11. The process will end when a new set of projects are voted on.
The ongoing Kusama parachain auctions have already seen more than 49,000 addresses provide more than 2.4 million KSM. Those parachains that will win the auctions will then be onboarded to Polkadot’s ecosystem.
Therefore, the Kusama price is rising mostly because of the news on auctions. Similarly, the Polkadot price has jumped by more than 18% in the past 24 hours. You can look at the previous winners of the parachain auctions here.
Kusama price prediction
The four-hour chart shows that the Kusama price found a major support at around $300 a few weeks ago. Since then, the price has been attempting to rebound. And today, it managed to move above the key resistance level at $372, which was the highest level this month. The price also managed to move above the 25-day and 50-day moving averages while the MACD has moved above the neutral level.
Therefore, the coin will likely keep rising as bulls target the next key resistance at $400. For this to happen, the coin will need to move above the resistance at $375. On the flip side, a drop below the key support at $350 will invalidate this trend.