See More

Polkadot (DOT) and Kusama (KSM) Price Gear up for Next Rally

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

In Brief

  • Polkadot (DOT) broke out from a descending resistance line.
  • It is trading above support at $6.20.
  • Kusama (KSM) was rejected by the $6.50 resistance area.
  • promo

The Polkadot (DOT) price and the Kusama (KSM) price are trading slightly above crucial horizontal support levels. Whether they bounce or break down could determine the future trend’s direction.

Polkadot (DOT) Price Attempts to Find Support

The Polkadot price has decreased below a descending resistance line since Aug. 2022. The downward movement led to a low of $4.22 on Dec. 29. 

The price began an upward movement shortly afterward and broke out from the descending resistance line on Jan. 13. Then, it also reclaimed the $6.20 horizontal area. 

Before falling, the DOT price reached a yearly high of $7.90 on Feb. 19. The decrease was preceded by bearish divergence in the daily RSI. The price is now trading just above the $6.20 horizontal support area.

Whether the price bounces in this area or breaks down could determine the future trend’s direction. A breakdown could lead to a fall to the 0.618 Fib retracement support level (black) at $5.65, while a bounce could lead to another attempt at breaking out above $7.60.

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

Kusama (KSM) Price Gets Rejected

The KSM token price has increased significantly since the beginning of the year. The increase led to a new yearly high of $49.49 on Feb. 19. However, the price failed to break out above the $46.50 resistance area, instead creating a long upper wick (red icon) and falling. The drop was preceded by bearish divergence in the daily RSI (green line).

Currently, the Kusama price is trading just above the 0.5 Fib retracement support level at $35.45.

If it bounces, the price could make another attempt at reaching the $46.50 resistance area. However, a breakdown below $35.45 could trigger a fall to the 0.618 Fib retracement support level at $32.18.

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

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

Trusted

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