While the KuCoin Token (KCS) price is showing signs that often lead to a rebound, the long-term readings remain bearish.
Despite this pessimistic outlook, the price may go through an initial rally before resuming its previous downtrend.
KCS price failed to clear the long-term resistance
KCS price has been falling below the long-term descending resistance line since it reached an all-time high of $28.77 in November 2021. So far, the line has been in place for 546 days. Therefore, the trend is considered downward as long as the price is trading below it.
While following the line, KCS dropped to as low as $5.55. The establishment of the long lower wick (green icon) and subsequent bounce validated the horizontal area of $6.60 as support.
Most recently, the line triggered a rejection on April 23, which spurred the current drop.
The weekly RSI supports the continuation of the decline. The RSI is a momentum indicator that traders use to assess whether the market is overbought or oversold and to determine whether to accumulate or sell an asset.
Readings above 50 and bullish indicate that the bulls still have an advantage, while readings below 50 indicate the opposite. The RSI is below 50 and decreasing, indicating that the trend is down.
KCS Price Prediction: Has the correction completed?
Despite the bearish outlook from the weekly time frame, the daily chart shows that a bounce might be imminent. The main reason for this is that the price seems to have completed a corrective ABC structure starting from March 18th.
If the structure is complete, it means that an upward movement will follow after the correction is completed. The daily RSI supports this possibility.
The indicator has created a bullish divergence (green line) and is moving up. A bullish divergence occurs when a decline in momentum does not follow a decline in price. It often leads to large upward movements.
In the case of KCS, this could lead to an increase at least to 0.618 Fibonacci at $8.80.
Although a bullish KCS price is expected, a drop below $7.24 means that the trend is still bearish. In this case, the KCS price could drop to $6.40.
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Disclaimer
In line with Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate and unbiased reporting, but market conditions are subject to change without notice. Always do your own research and consult with a professional before making any financial decisions.
