The Polkadot (DOT) price broke out from a descending wedge, while the Kusama (KSM) price broke out from a descending resistance line. Both are expected to increase in Feb.
Polkadot Price Looks Ripe for Continuation
On Jan. 13, the DOT price broke out from a descending wedge. Previously, the wedge had been in place since June 2022. Therefore, the breakout from it confirms a bullish trend reversal and legitimizes the upward movement that has been ongoing since Dec. 29.
While the DOT token price reached a high of $6.84 on Jan. 23. Afterward, it dropped because the daily RSI generated bearish divergence (green line). However, the RSI has now developed a hidden bullish divergence (white), which is considered a strong sign of trend continuation.
Therefore, the most likely future price outlook is the continuation of the upward movement toward the 0.618 Fib retracement resistance at $7.61.
On the other hand, a daily close below the $5.60 horizontal support area would invalidate this bullish forecast. In that case, the DOT price could fall to $4.50.
Kusama Price Eyes $51 Level
The Kusama price has increased massively since the beginning of the year. So far, the upward movement has led to gains of 72.40%. Despite a brief consolidation, the daily RSI has generated a hidden bullish divergence, a sign of trend continuation. If the increase continues, the next closest resistance area would be at $51.50, created by the 0.618 Fib retracement resistance level.
On the other hand, a daily close below the $31.50 support area would invalidate this bullish KSM token projection and could send the price to $25.
To conclude, the price outlook for both DOT and KSM is bullish. Increases toward $7.61 and $51.50, respectively, are likely. A close below their closest horizontal support levels would invalidate the bullish price forecast. This could lead to drops toward $4.50 and $25, respectively.
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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.