KSM, DOT USD Chart Analysis & Support Levels: Price Pattern Predicts Aug Rise

1 min read

Kusama and its close cousin Polkadot have both been making bullish strides toward resistance indicating revived strength. Kusama has enjoyed a rather impressive 13% boost while outperformed Polkadot concurrently rose a modest 4.4% in the crypto market. While KSM appears ready for retracement, a correction could allow DOT to bust through resistance and take a winning position.

Polkadot and Kusama have advanced to crucial resistance areas as the crypto market shows renewed strength.

Kusama Is Soaring. Can Polkadot Catch Up?

Shutterstock cover by Artit Wongpradu (edited by Mariia Kozyr)

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.

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.Kusama US dollar price chart

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.Polkadot US dollar price chart

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.

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