KuCoin eyes further selloff despite KCS soaring 79% in 10 days

Key Takeaways:

  • Crypto exchange KuCoin has defied the wider crypto market's downtrend.
  • KCS prices have risen by nearly 79% since May 12.
KuCoin's native token KCS prices have been rising for nearly 11 days. Image from CreativeCommons
KuCoin’s native token KCS prices have been rising for nearly 11 days. Image from CreativeCommons

NEW DELHI (CoinChapter.com) — Cryptocurrency exchange KuCoin’s native token KCS prices have been moving upstream against the crypto market’s bearish trend, jumping more than 79% between May 12’s low of $9.5 to reaching an intraday high of $17.13 on May 23.

On the other hand, the total crypto market cap fell by more than $64 billion in the same time frame.

KuCoin prices have been trending upwards since May 12. Source: CoinMarketCap.com
KuCoin prices have been trending upwards since May 12. Source: CoinMarketCap.com

KuCoin prices uptrend started after the token’s relative strength index rebounded from oversold levels on May 12. It seems KCS prices reacted in a textbook manner to oversold RSI levels.

Also Read: Chainlink price risks 30% decline in May as LINK paints a bearish continuation pattern.

In detail, RSI measures the magnitude of recent price changes to analyze overbought or oversold conditions. An oversold RSI is often a prelude to a bullish trend reversal. KuCoin’s RSI is currently neutral, with 55.48 on the daily charts.

KCSUSDT daily chart with Bollinger Bands and RSI. Source: Tradingview.com
KCSUSDT daily chart with Bollinger Bands and RSI. Source: Tradingview.com

If KuCoin’s uptrend falters, KCS prices could fall to immediate support near $16.5. A breach below immediate support could see the KuCoin token test support near $15.4.

Finally, a sustained sell-off might push KCS prices down to support from its 20-day moving average (20-day MA, red wave) near $14.9, nearly 13% below current price levels, before recovering. A rebound off the 20-day MA might suggest a potential change in trend.

KuCoin MACD Remains Bullish

Meanwhile, the momentum oscillator MACD continues to forecast a strengthening upward momentum for the KuCoin token.

Positive bars on the MACD histogram have been expanding, indicating that the MACD line (difference between 12-day and 26-day EMA) is moving away from the MACD signal line (9-day EMA of MACD).

KCSUSDT daily chart with MACD. Source: Tradingview.com
KCSUSDT daily chart with MACD. Source: Tradingview.com

In addition, the long lower wick on May 12’s candle suggests a buy-the-dip mentality among investors. If bulls continue to push KCS prices, the token could rise to the resistance zone between the 200-day MA ($19.7; green wave) and the 100-day MA ($18.6; purple wave).

The 200-day MA resistance presents a 15% price target for KuCoin token prices.

Also Read: KuCoin (KCS) jumps more than 56%, likely to paint a bullish pattern soon.

However, bears might defend the zone aggressively, likely forcing KCS to fall back and consolidate above immediate resistance near its 50-day MA (yellow wave) at $17.7.

At the time of writing, KCS was trading $17.1, up 0.8% on the day.

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KuCoin, KuCoin eyes further selloff despite KCS soaring 79% in 10 days

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