The Polkadot (DOT) and Kusama (KSM) prices have been trading around 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 been decreasing since Aug. 2022, falling below a descending resistance line. This led to a low of $4.22 on Dec. 29.
The price then began an upward movement and broke out from the descending resistance line on Jan. 13. It also reclaimed the $6.20 horizontal area.
The DOT price reached a yearly high of $7.90 on Feb. 19, but the increase 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.
Kusama (KSM) Price Gets Rejected
The KSM token price has been increasing since the beginning of the year, reaching 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.
The Polkadot (DOT) and Kusama (KSM) prices have been trading around crucial horizontal support levels, and whether they bounce or break down could determine the future trend’s direction.
At the time of writing, the Polkadot price is trading just above the $6.20 horizontal support area, while the Kusama price is trading just above the 0.5 Fib retracement support level at $35.45.
If the Polkadot price bounces in this area, it could make another attempt at breaking out above $7.60. On the other hand, a breakdown could lead to a fall to the 0.618 Fib retracement support level at $5.65.
As for the Kusama price, if it bounces, it 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.
In order to identify the future trend’s direction, investors should closely monitor whether the Polkadot and Kusama prices bounce or break down from their respective support levels.
It is also important to note that the cryptocurrency market is highly volatile and unpredictable. Therefore, investors should always be aware of the risks involved and should only invest what they can afford to lose.
For BeInCrypto’s latest crypto market analysis, investors can click on the link provided. This will provide them with the most up-to-date information regarding the Polkadot and Kusama prices, as well as other important market news.
Overall, the Polkadot (DOT) and Kusama (KSM) prices are trading around crucial horizontal support levels. Whether they bounce or break down could determine the future trend’s direction. Investors should closely monitor the prices to identify the future trend’s direction and should always be aware of the risks involved. For BeInCrypto’s latest crypto market analysis, investors can click on the link provided.
