The V-shaped recovery in KCS price registered 56% gain in less than a month. Moreover, the technical chart revealed an inverted head and shoulder pattern, which heightens the possibility of trend reversal. A bullish breakout from the $23.3 neckline would complete the chart pattern, providing an long opportunity for crypto traders.
Source-Tradingview
The Past Performance Or Trend
The correction phase initiated in December 2021 tumbled the KCS/USDT pair by 53% and brought it to 0.786 Fibonacci retracement level($13.5). The buyers aggressively defended this level and amid the recent recovery in the crypto market, the KCS price surged 56% to the $21.2 mark.
A few higher price rejection candles at the overhead resistance, indicated profit booking from long traders. A minor pullback(11.5%) to the $18.6 mark immediately rebounded, suggesting the sentiment has switched and traders are buying on dips.
Moving Average(20-100) bullish crossover Bolster the ongoing rally
The KCS/USDT technical chart displays an inverted H&S pattern in the daily time frame chart. This bullish reversal pattern has its neckline at the $21.2 mark and the buyers are on the verge of crossing above this overhead resistance.
If they succeed, the KCS price will complete the bullish pattern, providing an immediate target at $23.3. Furthermore, a bullish breakout from this following resistance could intensify buying pressure and surge the altcoin to the All-Time High resistance of $28.
By the press time, the current price of the KCS coin is trading at $20.6, with an intraday gain of 0.58%. Moreover, the 24hr volume change is $11.2 Million, indicating a 1.48% loss. According to coinmarketcap, the coin stands at #62 rank with its current market cap of $1.65 Billion(+1.44%).
Technical indicator
The recent price jump recovered the bullish alignment of the crucial EMAs(20, 50, 100, and 200). Moreover, a bullish crossover of the 20-and-100 EMA, attracts more buyers to the market.
The Relative Strength index(60) slope rallying higher in the positive territory accentuates the bullish momentum.
- Resistance levels- $21.2 and $23.3
Support levels- $18.6, 200-day EMA
Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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Source: https://coingape.com/markets/100963-2/