Buy Zone Incoming
I have been writing about Polkadot and the projects involved within the ecosystem for quite some time now. Projects such as EDG and Kusama, projects that for some reason have managed to stay under the radar. Well, not for long as Kusama has just surged 400% in the matter of a week.
I picked up Kusama at approximately $9 and was expecting some great gains within the coming months but even I was not expecting 400% within a week! What we have now seen is the inevitable retracement that will usher in a period of accumulation.
This move was most likely off the back of Polkadot's recent rally, as DOT hit exchanges. Mysteries surrounding market cap and token price seemed to dissolve almost instantly as DOT proceeded to enter full bull mode. Things are now a lot clearer and DOT is presently sitting at rank number 6 on CoinGecko.
A mere 11% in market cap appreciation will see DOT dethroning LINK from the number 5 spot and see Polkadot acquiring Top 5 status! LINK has retraced quite significantly from a recent all time high of $20 and a surge back up towards these levels would make it a lot more difficult for DOT to acquire this highly coveted position.
Prices have fallen but they may fall lower, so this becomes a bit tricky for investors who may want to start accumulating positions in DOT and KSM. Obviously, the best thing would have been to buy months ago because then quite a lot has to actually go wrong in order for it to negatively affect your position. I can't offer financial advice but I can tell you what I am doing.
I have positions in both DOT and KSM and am still looking to accumulate more at discounted prices. I will be watching the charts to look for continuation patterns to the upside, as well as begin to nibble at the current prices. I always average into my positions, whether they are trades or hodl positions. It is very seldom that this is not the correct approach.
I am more bullish on Kusama than Polkadot as DOT is already at number 6 and even a 70% move from this position will be very impressive. My focus is now more within the Polkadot ecosystem. I am currently exposed to EDG, AKRO, PCX and RING, of which AKRO is the largest holding.
Two days ago Kusama reached $40 and is currently trading at $28. This is a fairly decent entry point as a move back up to $40 would produce a 41% profit in a relatively short amount of time.
Please remember that this is not financial advice. DYOR and remain resolute.