Monday's TA: KuCoin (KCS), an asset resisting the market drop?

Monday’s TA: KuCoin (KCS), an asset resisting the market drop?

In this brand new technical analysis, let’s review the KCS which is the platform utility token KuCoin. Whether it is reducing transaction fees or getting a percentage of the profits from the exchange platform for holders of KCS, the platform tries to attract new users. Could other benefits come in the future? A very good question that time can answer. For now, let’s stop by our charts to understand the price structure of KCS which, despite the drop, looks relatively solid.

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A level not to lose in weekly

Price of the KCS against the dollar on a weekly scale (1W)

After exiting a long accumulation period at the start of 2021, KCS set new highs with an all time high at $28.77 last November. However, like the rest of the market, it has started a weekly downtrend with descending troughs and peaks. At the time the article is written, the asset is holding up. Yes, it has not lost its weekly support which formerly was a resistance. Will this situation last?

In the context of a downtrend with support touched several times, the latter becomes increasingly fragile. Will buyers give way to sellers? If we have a continuation of the current trend with a weekly close below the $14, we will have to keep our eyes on the lower levels. But then, what are the levels to monitor in the context of a continuity of the underlying trend?

We can identify three areas where the price could technically react with buying volume:

  • The $9.5 Zone : Resistance in May and June last year, it acted as support from July to September 2021.
  • The $6.95 : Level where sellers reacted in Feb 2021, price managed to hold above in May and June 2021.
  • The $5.15 : Technical level where the price reacted in February and April 2018, the market did not forget this zone last year.

Although the KCS can potentially react on a weekly scale on these levels, we are not there yet. In order to see a little more clearly for the coming weeks, let’s go to the chart on a daily scale to determine the most plausible scenarios.

The KCS is in a technical dead end?

KCS rate against the dollar on a weekly basis

After a powerful bearish movement, we can see a price recovery of the same magnitude. Having quickly returned to the technical area of $14, what’s next for the KCS? The daily trend is bearish with the registration of a trough and peak lower than the previous one. Liquidity is to be sought, whether up or down. In the context of a rebound in the American indices, we can envisage the continuation of the rebound for the cryptocurrency market.

In this context, we can opt, first of all, for a return to the supply zones represented on the graph. At a minimum, a return to $17.74 or even, in the best of cases, a return to the supply zone greater than 19.03. This would fill in the FVGs that are shown in yellow on the graph. Thus, the market could give a new downward impulse. It will then look for the daily zone that corresponds to the recent low point of KCS.

Also, please note that the rebound on the demand zone would occur in the event that KCS does not seek the higher levels in the first place. If the bullish rebound materializes as mentioned in the second paragraph, this will not call into question the weekly trend which is clearly bearish. It will therefore be necessary, during the next few days, to monitor the price structure and the formation of ascending or descending tops in the daily and H4 time unit. This will make it possible to determine as quickly as possible the direction that the KCS will have to take.

The KCS is in force against Bitcoin?

KCS cryptocurrency price against the dollar on a weekly basis
Price of KCS against Bitcoin on a weekly scale

To complete the analysis, let’s move on to a quick review of KCS’s situation in the face of the bitcoin which is quite positive. As you can see, since the resumption of 1260 Satoshis in April 2021, the asset manages to outperform the king of cryptocurrencies by registering Higher High and Higher Low (peaks and troughs higher than the previous ones). Thus, KCS is doing well against bitcoin. But then, what should we deduce for the future?

For now, the KCS being relatively strong in the current market, it will tend to push higher when bitcoin goes up. Then, when bitcoin drops, it will tend to hold up better than the underperforming altcoins. This therefore confirms the beginning of the article, which testifies to a relatively solid asset against the dollar. Will this continue?

Currently at the same level as the July high 2018 at 5750 satoshisthis is the last level to pass before considering a return to the aux 11000 Satoshis (top of previous bullrun). On the contrary, a loss of 4000 Satoshis would give the sign of a potential change of trend for the KCS. In this context, this chart is more than ever to watch. It makes it possible to lift the gray areas on the trend that the asset will take during the coming weeks.

Here we are at the end of the analysis of the KuCoin. This asset, as you have noticed, remains relatively solid in a rather sluggish market. However, this is not absolute. Everything can change quite quickly in the highly volatile cryptocurrency market. So be on your guard. Continue to watch the key levels discussed in the article. The next few days will give more indications of the price structure that the KCS will build. Of course, KuCoin is not limited to a simple exchange platform. For this, I invite you to discover our last article to understand theKuCoin’s appetite for Web3.

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