Polkadot (DOT) price broke out from a descending wedge, while Kusama (KSM) price broke out from a descending resistance line. Both are expected to rise in February.
Polkadot looks ripe for price continuation
On January 13, DOT price broke out of a descending wedge. Previously, the wedge was to exist from June 2022. Therefore, its breakout confirms a bullish trend reversal and validates the ongoing upward movement since December 29.
While the DOT token price reached a high of $6.84 on January 23. Later, it declined as the daily RSI generated a bearish divergence (green line). However, the RSI has now developed a hidden bullish divergence (white), which is considered a strong signal of trend continuation.
Therefore, most likely the future price outlook continues to be on the upside towards the 0.618 Fibonacci retracement resistance at $7.61.
On the other hand, a daily close below the $5.60 horizontal support area will invalidate this bullish forecast. In that case, the price of DOT could drop to $4.50.
Kusama Price Eyes $51 Level
Since the beginning of the year, there has been a huge increase in the price of Kusama. So far, the upward movement has yielded a gain of 72.40%. Despite a brief consolidation, the daily RSI has formed a hidden bullish divergence, indicating a continuation of the trend. If the rise continues, the next nearest resistance area will be at $51.50, formed by the 0.618 Fibonacci retracement resistance level.
On the other hand, a daily close below the $31.50 support area will invalidate this bullish KSM coin launch and could send the price towards $25.
To conclude, the price outlook is bullish for both DOT and KSM. There is a possibility of further increases to $7.61 and $51.50 respectively. Closing below their nearest horizontal support levels will invalidate the bullish price forecast. This could lead to further declines towards $4.50 and $25, respectively.
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source: beincrypto.com
