In this new technical analysis from Monday, we take a look at the KCS of the KuCoin platform. The week known to be high in volatility and altcoins saw the first impacts of new economic freebies. The transition of Ethereum (The Merge) is on everyone’s lips and should bring its share of want too. Are we on the verge of a rise? For the moment, apart from the powerful speculations on the success of the transition to PoS on Ethereum, let’s focus on the altcoin KCS.
In a simple range on a weekly scale?
First, we can confirm that the KCS is registered in a lateralization phase. After several weeks, the move between a resistance of $10.66 and a point of $8.034, which is why support on the EMA200. In confluence with resistance (red line) is located at EMA13. This last matter was the downtrend since the price has already worked a bearish rejection in May and June denier. So much so that the price does not extract itself from this zone of weekly lateralization, we will be able to witness an evolution between the low point and the resistance.
However, it is important to note that a breakout joins the rise in resistance and the EMA 13 holding above these levels. a good sign. This can be requested from KCS consider bullish targets Says the EMA25/32 between $12.25 and $12.85. However, we are not there yet. Thus, let us say on a smaller time scale to gain precision in bearish and bullish price targets.
A critically bullish trend on KCS
Moving onto a smaller time frame, the resistance area was widened up to $10.88 (red zone). Recently, KCS to resume pivot level which sits at $9.30. Resistance or support, this level is significant, so it’s a good thing that the price is above. In addition, the asset broke free from the set of 13/25/32 EMAs that have been resistance since the end of August. Thus, registering troughs and rising peaksthe trend is now bullish on a daily scale.
Currently, KCS is in a separate zone which sits at 9.86/9.94. If the price manages to break out of this area to preserve the bullish momentum, we can expect a bullish leg within the range. In this framework, the first objective around 10.35 dollars. If Ethereum and Bitcoin do not have the power to reverse the momentum turning red and The Merge is a bullish catalyst, it is not possible to see KCS return to its resistance zone.
The H4 scale confirms our statements?
You can highlight the relevance of the area under which the price is currently moving. Apart from a false breakout that could occur, a recovery from the gray area with a close above $9.94 in H4 could confirms the bullish movement mentioned previously. In addition to the target set at $10.35, if you are not comfortable with the current environment, you can compose intermediate levels. For example, $10.12 is not to be overlooked and has been both resistance and support in the past. Thus, we can expect a price reaction on this level before continuing to rise.
However, do not get stuck in a particular bias. It is necessary that adaptI was able to react to a trend reversal with a loss of bullish momentum. For this, I invite you to watch the reaction of the price on all the EMA13/25/32 as well as the EMA200 on the H4. It is a good way to identify the trend in which the price is entering and prepare for a potential change in structure on the asset.
Is KCS in a good position against Bitcoin?
Against bitcoin, activity mostly moved between 4,591 satoshis (upper gray area) and 4,268 satoshis (lower gray area). Recently, KCS made a breakthrough with a high of 4,840 satoshis. However, all efforts were reduced to nothing within a few days. Unfortunately, the action was taken to preserve the 50% delay of the movement which was between 4,060 and 4,840 satoshis. If he loses this level, it will testify to a KCS Weakness, which could hardly put in a bullish scenario. However, if the activist tries to bounce in the direction of the lower band, this could be an opportunity to break the resistance zone against the dollar on the upside.
For the moment, we must not let go of anything on the markets! The week is likely to be eventful, which alerts you to the fact not to take reckless risks. Control your risk and adapt the tails of your positions even if the use of leverage! KCS is (almost) in a favorable setup at home if Bitcoin and Ethereum fail to celebrate. However, one must monitor the situation of the asset against Bitcoin. Lately, the king of cryptocurrencies tends to suck some of the capital from the market. Will it continue in this dynamic or will it give way to altcoins so that they can make some rebounds?