Polkadot, Kusama Meet Critical Resistance
Crypto Briefing | May 31, 2022 12:17AM ET
Polkadot and Kusama have advanced to crucial resistance areas as the crypto market showed strength to kick off the week. The cryptocurrency market has kicked off the week in the green, helping Polkadot and Kusama surge to critical resistance areas. Still, both assets have yet to find the catalysts they need to break out. Polkadot and Kusama are still consolidating within no-trade zones, waiting for a spike in volatility.
Polkadot has defined a clear support floor at $8.55, while a resistance barrier lies at $10.70. A decisive four-hour candlestick close outside of this range could determine where the blockchain’s DOT token will go next.
The formation of a symmetrical triangle on the four-hour chart suggests that its price could move by nearly 42% upon the break of the stagnation period.
If this technical formation remains the key governing pattern driving Polkadot’s price action, a breach of the $10.70 resistance level could result in an upswing to $14.80.
However, if selling pressure mounts and DOT dips below the $8.55 support, a nosedive to $5.18 could follow.
Kusama is also showing ambiguity, trading in the $64.80 to $87.85 range. A sustained four-hour close below support or above resistance could help determine where KSM will go next.
However, due to ongoing uncertainty across the crypto market, KSM’s direction will likely be unclear until the trend resolves.
Moreover, Kusama appears to be forming a parallel channel on its four-hour chart. The pattern’s height suggests that a break of the $64.80 to $87.85 range could result in a 35.34% price movement.
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Despite Bitcoin’s bullish price action to open the week, Polkadot and Kusama have yet to find new catalysts to help give them sufficient trading volume to break out.
The price pockets both assets are currently stuck in can be considered no-trade zones. Until they decisively breach their points of interest, their directions will likely remain unclear.
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