Trusted

Here’s Why Kusama (KSM) Price Could Outperform Polkadot (DOT)

2 mins
Updated by Geraint Price
Join our Trading Community on Telegram

In Brief

  • Polkadot (DOT) price trades below resistance at $6.20.
  • Kusama (KSM) price reclaimed the $32.20 area.
  • KSM broke out from a descending resistance line.
  • promo

A crucial horizontal area rejected the Polkadot (DOT) price, while the Kusama (KSM) price reclaimed its own horizontal level.

Polkadot (DOT) Price Falters After Rejection

The DOT price has fallen since reaching its yearly high of $7.90 on Feb. 19. The decrease was preceded by a bearish divergence in the daily RSI. It led to a low of $5.15 on March 10.

More importantly, the price fell below the $6.20 support area. Then, it validated it as resistance on March 14 (red circle). The rejection also coincided with an RSI rejection from the 50 line (red icon), increasing its significance. 

Whether the Polkadot price reclaims the area or fails to do so will likely determine the future trend’s direction. If it reclaims it, DOT could increase to $7.60. However, if the rejection continues, the DOT token price could fall to the year’s lowest price at $4.25.

Polkadot (DOT) Price Breakout
DOT/USDT Daily Chart. Source: TradingView

Kusama (KSM) Price Reclaims Key Level

Similar to DOT, the KSM price has fallen since its yearly high of $49.49 on Feb. 19. The decrease was preceded by a bearish divergence in the daily RSI (green line). The drop validated the $46 area as support. 

However, the price action since then has looked more bullish than that of DOT. The main reason is that the KSM token price reclaimed the $32.20 area after initially deviating (green circle) below it. The support area is created by both the 0.618 Fib and a horizontal level. Such deviations often precede significant upward movements. Moreover, the price broke out from a short-term descending resistance line.

As a result, an increase toward $47 is the most likely scenario.

However, a close below $32.20 would invalidate this outlook. In that case, the Kusama price could fall to $22.50.

Kusama (KSM) Price Movement
KSM/USDT Daily Chart. Source: TradingView

To conclude, the KSM price movement looks more bullish than that of DOT. This is because the former has reclaimed a horizontal level while the latter was rejected by one. Therefore, it has a higher chance of moving upward. A close below the aforementioned support area would invalidate this outlook and could lead to a sharp fall toward $22.50.

For BeInCrypto’s latest crypto market analysis, click here.

Top crypto projects in the US | November 2024
Coinbase Coinbase Explore
Coinrule Coinrule Explore
Uphold Uphold Explore
3Commas 3Commas Explore
Chain GPT Chain GPT Explore
Top crypto projects in the US | November 2024
Coinbase Coinbase Explore
Coinrule Coinrule Explore
Uphold Uphold Explore
3Commas 3Commas Explore
Chain GPT Chain GPT Explore
Top crypto projects in the US | November 2024

Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

Valdrin-Tahiri.jpg
Valdrin Tahiri
Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona School of Economics. Shortly after graduating, he began writing for several different cryptocurrency related websites as a freelancer before eventually taking on the role of BeInCrypto's Senior Analyst. (I do not have a discord and will not contact you first there. Beware of scammers)
READ FULL BIO
Sponsored
Sponsored