Kusama Is Soaring. Can Polkadot Catch Up? – WORLD CRYPTO BUSINESS

Kusama Is Soaring. Can Polkadot Catch Up?


Key Takeaways

Kusama looks like it’s approaching a local top after surging over 13% in the last 12 hours. 
Polkadot rose by only 4.4% in the same period but has yet to slice through critical resistance. 
While KSM looks poised to retrace, DOT may gain further bullish momentum. 

Share this article

The canary network for the Polkadot blockchain, Kusama, has recently enjoyed a rally in the market. Now, the technicals point to a brief correction that may allow DOT to take the lead.

Kusama Posts Rally

Kusama has outperformed Polkadot in the latest market bounce, but the near-term outlook for both assets differs.

Kusama has surged by nearly 13% over the last 12 hours as the cryptocurrency market enjoys new tailwinds. The Polkadot canary network jumped from a low of $61 to local high of $69. Despite the upward price action, KSM now looks bound for a spike in profit-taking.

The Tom DeMark (TD) Sequential indicator has presented a sell signal on Kusama’s daily chart. The bearish formation developed after KSM met the 32% upside target that a descending triangle had forecasted. An increase in selling pressure could help validate the pessimistic outlook, leading to a correction to $61 or even $57.

Kusama would likely need to print a daily candlestick above $68 to have a chance at invalidating the bearish thesis. If it succeeds, the critical areas of resistance to watch are $73, $76, and $81.

KSM/USD daily chart (Source: TradingView)

While Kusama looks like it’s nearing a local top, Polkadot appears to have more room to ascent. DOT has risen 4.4% in the past 12 hours, which helped it move above the 50-day moving average at $7.60 on the daily chart. A decisive close above this crucial resistance area could signal the continuation of the uptrend.

DOT/USD daily chart (Source: TradingView)

Given that Polkadot broke out of a descending parallel channel on July 18, it had a good chance of posting a 20% upswing toward $9.40. However, DOT needs to breach the 50-day moving average and overcome the $8 resistance level to get there. If it fails to do so, it could suffer a steep correction to $6.80.

Disclosure: At the time of writing, the author of this piece owned BTC and ETH.

For more key market trends, subscribe to our YouTube channel and get weekly updates from our lead bitcoin analyst Nathan Batchelor.

Share this article

The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.

You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.

See full terms and conditions.



Recommended For You

About the Author: administrator

Leave a Reply

Your email address will not be published. Required fields are marked *