Polkadot price rose for three consecutive weeks, reaching its highest level since March 4. It has risen to above $8, up by over 138% from its lowest point this year. Similarly, Kusama (KSM) token rose to $45, a significant increase from the year-to-date low of $16.43.
Kusama price analysis
The weekly chart shows that the KSM token has remained in a tight range in the past few years. It has remained inside a channel whose support and resistance stood at $21.50 and $67.15 since June 2022.
Kusama price remains about 92% below its all-time high, meaning that it has underperformed other popular coins like Solana and Bitcoin. This price action happened as the activity level in the network remained muted.
Kusama’s Average True Range (ATR) has continued falling, a sign that the amount of volatility is falling. The coin has also constantly remained below the 50-week and 100-week moving averages.
Therefore, the ongoing rebound is likely because investors are buying the dip. Besides, it has formed what looks like a double-bottom chart pattern at $21.50. In most periods, this is one of the most bullish signs in the market.
The coin’s neckline stands at $67.15, its highest level in March this year. Therefore, a break above that level will point to more gains, with the next point to watch being at $165.43, its 23.6% Fibonacci Retracement level, which is about 270% above the current level.
The bullish Kusama price forecast will become invalid if the coin drops below the lower side of the channel at $21.50.
Kusama chart by TradingView
Polkadot price prediction
For starters, Polkadot and Kusama are similar projects launched by the same team. Kusama acts as the canary brand where developers first test their parachains before moving them to Polkadot.
Recently, however, the use of this arrangement is losing traction, with Polkadot ending the auction process.
Polkadot price went vertical, because, like Kusama, it has formed a triple-bottom pattern at $4. It failed to move below that level three times since 2023.
The neckline of this pattern is at $11.91, its highest level on March 11. DOT price has moved above the 50-week and 100-week Exponential Moving Averages (EMA) and is nearing the key resistance point at $11.95.
The Relative Strength Index (RSI) and the Market Value to Relative Value (MVRV) indicators have all pointed upwards. Data shows that the MVRV value has risen to 3.60, up slightly from 3.38, its highest level on March 4.
Therefore, there is a likelihood that the Polkadot price will continue rising as bulls target the key resistance at $16.13, the 23.6% retracement level. This view will be confirmed if the coin rises above the key resistance level at $11.9.
DOT chart by TradingView
Crypto investors have identified several catalysts for the DOT price. For one, its fees have jumped by 600%, while the number of active users in the network has jumped. Also, its role in the gaming industry is increasing. For example, FIFA announced a partnership with Mythical Games to launch FIFA Rivals, a blockchain game powered by the Polkadot network.
The post Here’s why the Polkadot and Kusama prices are soaring appeared first on Invezz