2023-6-1 19:00 |
While the KuCoin Token (KCS) price shows signs that often lead to a bounce, the long-term readings remain bearish.
Despite this pessimistic outlook, the price may undergo an initial rally before resuming its previous downward trend.
KCS Price Fails to Clear Long-Term ResistanceThe KCS price has fallen under a long-term descending resistance line since reaching an all-time high price of $28,77 in Nov. 2021. So far, the line has been in place for 546 days. So, the trend is considered bearish as long as the price trades below it.
While following the line, KCS fell to a low of $5.55. The creation of a long lower wick (green icon) and the ensuing bounce validated the $6.60 horizontal area as support.
More recently, the line caused a rejection on April 23, catalyzing the current decrease.
KCS/USDT Weekly Chart. Source: TradingViewThe weekly RSI supports the continuation of the decrease. The RSI is a momentum indicator used by traders to evaluate whether a market is overbought or oversold and to determine whether to accumulate or sell an asset.
Readings above 50 and an upward trend suggest that bulls still have an advantage, while readings below 50 indicate the opposite. The RSI is below 50 and decreasing, suggesting that the trend is bearish.
KCS Price Prediction: Is the Correction Complete?Despite the bearish outlook from the weekly time frame, the daily one shows that a bounce may be forthcoming. The main reason for this is that the price has seemingly completed an A-B-C corrective structure starting on March 18.
If the structure is complete, it means that an upward movement will follow after the correction is complete. The daily RSI supports this possibility.
The indicator has generated a bullish divergence (green line) and is moving upwards. A bullish divergence occurs when a momentum decrease does not follow a price decrease. It often leads to significant upward movements.
In the case of KCS, it could lead to an increase to at least 0.618 Fib at $8.80.
KCS/USDT Daily Chart. Source: TradingViewDespite this bullish KCS price prediction, a fall below $7.24 will mean that the trend is still bearish. In that case, the KCS price could drop to $6.40.
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The post KuCoin Token (KCS) Price: Imminent Bounce or Further Decline? appeared first on BeInCrypto.
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