[This is why Polkadot and Kusama prices are soaring]
The price of Polkadot (DOT) has risen for three consecutive weeks, breaking through $8, a 138% increase from the year's low. Kusama (KSM) price also rose to $45, rebounding sharply from lows of $16.43. This rally may be related to investors buying on dips.
The KSM weekly chart shows prices trading in a long-term range of $21.50 to $67.15, still 92% off its all-time high. The recent rally has formed a bullish double bottom-like pattern with a neckline at $67.15. A break above this level could lead to a further challenge to $165.43 (23.6% Fibonacci retracement), which would take the price up to 270%. But the rally could end if it breaks below the $21.50 support.
Polkadot and Kusama are related projects, Polkadot is the main network, and Kusama is the test platform. However, Kusama’s usage has declined recently and Polkadot has ended its auction process.
DOT price formed a triple bottom pattern at $4 with the neckline at $11.91 (this year’s March high). DOT has now broken above the 50-week and 100-week exponential moving averages (EMA) and is approaching key resistance at $11.95. A breakout could see the price challenge $16.13 (23.6% retracement).
Technical indicators such as RSI and Market Value Relative Value (MVRV) are both trending upward, with MVRV having risen from 3.38 to 3.60, indicating increasing bullish sentiment in the market.
Bullish reasons for DOT include a 600% increase in online transaction fees, a significant increase in the number of active users, and its expanded functionality in the gaming industry. For example, FIFA collaborated with Mythical Games to launch the Polkadot-based blockchain game FIFA Rivals to further consolidate the value of its ecosystem.
