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.
Main content of the article:
The Polkadot and Kusama prices are both expected to increase in February. Polkadot (DOT) recently broke out from a descending wedge and is expected to reach a high of $7.61. Kusama (KSM) has seen a 72.40% increase and could reach $51.50. A close below their closest horizontal support levels could invalidate the bullish price forecast, leading to drops toward $4.50 and $25, respectively. Investors should use caution and conduct their own research before making any financial decisions.
