To gauge any market trend, we must look under the surface at the components themselves.
This is true for Stocks, Commodities, Bonds, and even Cryptocurrencies. It’s Universal.
For instance, when discussing Smart Contract Platforms like Polkadot or Ethereum, we evaluate whether the bulls are diving deep into the projects of the other offerings in the ecosystem.
This is Technical Analysis 101, and it goes back to Charles Dow in the 1800s looking for confirmation of the major averages.
Over 130 years later, in entirely new assets, the same principles govern markets.
In this case, we’re looking at Polkadot’s first project release and Canary Network, Kusama $KSM.
Similar to how Litecoin is seen as the experimental little brother to Bitcoin, any new additions to be implemented on Polkadot go through Kusama first.
For this reason, the two trade very much in tandem.
So how about this divergence?