- Wanchain integrated with Moonbeam Network to boost Kusama’s DeFi ecosystem.
- KSM/USDT printed a 30% intraday rally
- Kusama’s native token is in overbought territory
JAIPUR (Coinchapter.com) – Kusama’s underpinning token KSM logged 30% intraday gains amid Wanchain’s partnership with Moonbeam to boost the Polkadot Canary Network’s DeFi ecosystem.
The KSM/USDT pair lifted off from $296.2 at the opening bell of the session on Tuesday to fly to $421.8. KSM broke out of a sideways momentum with the rally that kept upsides restricted (above $327) since Friday. However, bulls managed to close above $389.6, a multi-month resistance since June after assessing Wanchain’s deployment on Moonriver, Moonbeam’s sister network.
Why Is The Wanchain-Moonbeam Partnership Bullish For Kusama?
As per the official announcement, Wanchain’s deployment on Moonriver will let Kusama developers access Wanchain’s blockchain interoperability solutions to build cross-chain applications. In addition, the collaboration intends to boost Kusama’s DeFi ecosystem.
Wanchain or Wide Area Network chain allows cross-chain transactions between isolated heterogeneous blockchains. It currently supports Bitcoin, Ethereum, Wanchain, EOSIO, Binance Smart Chain, Litecoin, XRP Ledger.
Moonriver is an Ethereum compatible, smart contract platform for developers to build or port their Ethereum-based projects to Kusama. Similar to Kusama, Moonriver is a canary network for Moonbeam. And much like Kusama, Moonriver is turning out to be a canary network for Moonbeam.
“DeFi activity is growing on many different blockchains, but the lack of integration between these blockchain ecosystems limits the liquidity and traction for many protocols,” Wanchain offers bi-directional connectivity options to multiple blockchain ecosystems from Moonriver. This connectivity will provide a rich set of assets to the growing defi ecosystem on Kusama and ultimately Polkadot.”said Derek Yoo, Founder of Moonbeam
BUT KSM Looks Overbought
The latest rally led to KSM/USDT sparking overvaluation concerns amongst daytraders and new holders. Kusama’s token jumping to $421 resulted in its relative strength index (RSI) surpasses the 30-70 range to hit 79. A similar scenario occurred on August 11. RSI tapped 80.46 amid KSM/USDT’s uptrend and then declined to 32.98 before picking up again on Friday.
Currently, with RSI trending at 79, the market scenario points towards a strong correction. Selloffs could lead KSM to drop to $348. Beyond that, a drop could occur if bearish pressure remains constant. According to the Fibonacci retracement plot, the token stands to drop to $306. Sellers have gathered en-masse to book profits.