In this new Monday technical analysis, let’s take a look at the KCS of the KuCoin platform. The week ahead promises to be rich in volatility and altcoins will be the first to be impacted by new economic data. Ethereum’s transition (The Merge) is on everyone’s lips and should bring its share of volatility too. Are we on the verge of a rise? For the moment, in addition to potential speculation as to the success of the switch to PoS on Ethereum, let’s focus on the altcoin KCS.
In a simple range on a weekly scale?
Initially, we can see that the KCS is part of a lateralization phase. For several weeks, it has been moving between resistance at $10.66 and a low point at 8.034 when the price took support on the EMA200. In confluence with resistance (Red line) is the EMA13. The latter materialized the downward trend since the price has already operated a bearish rejection in May and June last. As long as the price does not extract itself from this zone of weekly lateralization, we can witness an evolution between the low point and the resistance.
However, it is important to note that an upside break of the resistance and the EMA 13 holding above these levels would be a good sign. This would allow KCS consider bullish targets such as the EMA25/32 between $12.25 and $12.85. However, we are not there yet. So, let’s move on a smaller time scale to gain precision in bearish and bullish price targets.
A trend that is turning bullish on KCS
Moving on to a smaller time frame, the resistance area was widened to as low as $10.88 (red zone). Recently, KCS took over 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 which 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 under another key area which sits at 9.86/9.94. If the price manages to break out of this zone in order to preserve the bullish momentum, we can expect a bullish leg within the range. In this framework, the first objective at around 10.35 dollars. If Ethereum and Bitcoin do not derail this momentum by turning red and The Merge proves to be a bullish catalyst, it is not impossible to see KCS return to its resistance zone.
The H4 scale confirms our statements?
You can notice the relevance of the area under which the price is currently moving. Apart from a false breakout that may occur, a recovery from the gray zone with a close above $9.94 in H4 could give us confirm bullish move mentioned previously. In addition to the objective which is established at 10.35 dollars, if you are not comfortable in the current context, you can add intermediate levels. For example, $10.12 is not to be overlooked and has been a resistance as well as a 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 adaptbe 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 of EMA13/25/32 as well as the EMA200 in H4 scale. This 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.
KCS is in a good situation against Bitcoin?
Against bitcoin, the asset mostly moved between 4,591 satoshis (upper gray area) and 4,268 satoshis (lower gray area). Recently, KCS made a breakthrough by hitting a high of 4,840 satoshis. However, all efforts were reduced to nothing within a few days. Now, the asset is battling to preserve the 50% retracement of the move that took place between 4,060 and 4,840 satoshis. If he loses this level, it will testify to a KCS weakness, which could challenge a bullish scenario. However, if the asset tries to rebound towards the lower band, this could be an opportunity to break the resistance zone against the dollar.
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 sizes of your positions as well as the use of leverage! KCS is (almost) in a bullish setup if Bitcoin and Ethereum don’t ruin the game. 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?