An important horizontal zone rejected the price of Polkadot (DOT), while the price of Kusama (KSM) recovered its horizontal level.
Polkadot (DOT) Price Stumbles After Rejection
The price of Dot has declined since reaching its yearly high of $7.90 on 19 February. The decline was preceded by a bearish divergence on the daily RSI. It reached a low of $5.15 on 10 March.
More importantly, the price declined below the $6.20 support area. Then, it validated it as resistance on March 14 (red circle). The rejection also coincided with an RSI rejection from the 50 line (red icon), adding to its significance.
Whether Polkadot recaptures the price area or fails to do so will determine the future trend direction. If it reclaims this, DOT could rise to $7.60. However, if the rejection continues, the DOT token price may drop to the lowest price of the year at $4.25.
Kusama (KSM) price reclaims key levels
Similar to DOT, KSM price has declined from its yearly high of $49.49 on 19 February. The decline was preceded by a bearish divergence in the daily RSI (green line). The drop confirmed the $46 area as a support.
However, since then the price action is looking more bullish than DOT. The main reason is that KSM token price reclaimed the $32.20 area after initially deviating below it (green circle). The support area is formed by both the 0.618 Fib and the horizontal level. Such divergences are often preceded by significant upward movements. Besides, the price broke a short term descending resistance line.
As a result, an increase towards $47 is the most likely scenario.
However, a close below $3.20 would invalidate this view. In that case, the price of Kusama could drop to $22.50.
To conclude, KSM price movement looks more bullish than DOT. This is because the former has regained one horizontal level while the latter was declined by one. So there is a high chance of it going higher. A close below the aforementioned support area will invalidate this view and a sharp decline towards $22.50 could occur.
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