- Polkadot and Kusama are sitting in oversold territory after diving by more than 28%.
- Now, DOT and KSM are presenting buy signals on their daily charts.
- A spike in upward pressure could help both tokens rally by over 16%.
Share this article
Polkadot and Kusama appear to be on the brink of a bullish impulse. Still, both assets need to overcome a hurdle to achieve their upside potential.
Polkadot, Kusama Look Ready to Rally
Polkadot and Kusama appear to be gaining bullish momentum for a rebound after both tokens incurred significant losses over the past 11 days.
Polkadot’s DOT token has recently endured a steep downtrend, losing 28.72% in market value since peaking at $23.85 on Apr. 2. Polkadot appears to have found vital support around the $17 level. Meanwhile, one technical indicator suggests that the asset is trading in oversold territory and could be ready to bounce.
The Tom DeMark (TD) Sequential indicator currently presents a buy signal on DOT’s daily chart. The bullish formation developed as a red nine candlestick, indicative of a one to four daily candlesticks upswing or the beginning of a new uptrend. A spike in buying pressure around the current price levels could help validate the optimistic outlook.
Polkadot must print a daily candlestick close above $18.30 to encourage sidelined investors to re-enter the market. Breaching this resistance level could confirm the buy signal presented by the TD and push Polkadot to $19.50 or even $21.
Kusama has also reached a crucial demand area after plummeting since Apr. 2. The $148 support level has prevented KSM from dipping further and could serve as a rebound zone. Still, it must breach critical resistance to be able to advance further.
The TD has also presented a buy signal in the form of a red nine candlestick on Kusama’s daily chart. KSM must make a decisive close above the $160 resistance level for the bullish formation to be validated. Slicing through this hurdle could result in an upswing to $180 or even $207.
It is worth noting that Polkadot and Kusama must remain trading above support for the bullish outlook to prevail. If DOT dipped below $17, it could dive to $16. KSM, meanwhile, faces a drop to $136 if it does not hold $148.
Disclosure: At the time of writing, the author of this piece owned BTC and ETH.
Share this article
OVR – the largest decentralized AR Metaverse
OVR is the decentralized infrastructure for the metaverse, merging physical and virtual world through Augmented Reality, creating a new dimension where everything is possible. It’s composed of 1.6 trillion unique hexagons…
Grayscale Rebalances to Avalanche, Polkadot, Cosmos
Grayscale has also removed Sushi and Synthetix from its DeFi Fund. Grayscale Announces Latest Rebalancing Grayscale Investments has completed its second portfolio rebalancing of 2022. The asset management giant revealed…
Acala Integrates Wormhole, Taking Polkadot Multi-Chain
Acala and Karura have announced plans to integrate with the leading cross-chain bridge, Wormhole. The move will connect the Polkadot and Kusama ecosystems with eight other Layer 1 chains, including…
Leave a Reply