KADENA token price analysis: KDA token is approaching long term demand, will it bounce back?

KDA token price is in downtrend from the past couple of trading days and is now trading at $6.4.
The token is forming a falling wedge pattern on a weekly time frame.
The pair of KDA/BTC is trading at 0.0001674 with a decrease of -1.47% in the market cap of the digital asset over the past 24 hours.

KDA token price is in downtrend on a larger time frame for the past couple of trading days. The token fell after forming a big bearish engulfing candle on the daily chart. KDA token has been trading in the downward parallel channel over the past three weeks. The token forms lower low and lower high formation, indicating a bearish trend on bigger aspects.The token recently gave a breakout of 50 and 100 EMA, but it happened to be a fake breakout as the price immediately came down below the breakout level. The token was trading at the upper band of the Bollinger band indicator, and after facing rejection, it is now falling. At present, the token is trading below all the vital Exponential Moving Average(20,50,100) and could face rejection moving upwards.Volumes are flowing from both the buyers and the sellers. It seems the bears have taken control after the fake breakout as the volumes have increased rapidly afterwards.
KDA token price could bounce back if the bulls take control.

MACD and Supertrend are showing bearish signs on daily time frame

KDA token price, as per the price action, is showing bearish signs on the daily time frame and the technical parameters suggest the same.

Moving Average Convergence Divergence (Bullish): MACD indicates a bearish trend on the daily time frame. The seller’s (orange) line crossed the buyer’s (blue) signal line on the downside. The token is now in a strong downtrend on a broader prospect and a little more pressure from bears could push the price down to$4.5. If the bulls are not able to sustain the coin price at $4.5 demand zone the coin can fall further down.

Supertrend: The coin is in a downtrend on broader prospects, and the supertrend indicator is depicting the same. The indicator has given a sell signal.FLOW coin broke the super trend line at $6.1 with a strong bearish candlestick pattern, which triggered the sell signal. For the indicator to turn bullish the coin needed to storm past the green trendline. This could result in supertrend indicator showing buy signal.

KDA token is forming falling wedge pattern on weekly time frame

KDA token is falling from the past trading days and as a result the token started trading in a small range which led to formation of a falling wedge pattern.

Average Directional Movement Index: ADX has been continuously dipping as the coin started falling from the recent high. Recently, it slipped below 40. At present, the ADX curve is 38.63, and thus it follows the coin price. If the KDA token price continues to fall further below the supply zone, the Curve can be seen falling down, and it will become difficult to recover in the near future.

Relative Strength Indicator: RSI is trading at 47.21 after the token faced rejection and fell. The RSI curve fell out of the 50 halfway mark and is also downtrend since the token started falling. The token is currently trading below the halfway mark of 50, and now the token price can fall to $4.5 if the bulls do not take control. The RSI curve has crossed the 20 SMA curve, indicating a bearish trend for the short-term.

CONCLUSION: KDA token price is falling from the past trading days and technical parameters suggest the same.Due to the fall in the price of the token. It has formed a bullish pattern in a larger time frame. It remains to see if the token falls below the $4.5 demand zone or bulls take control and push the price higher breaking the green trendline validating the bullish pattern.

SUPPORT: $4.3 and $4.5

RESISTANCE: $10.4 and $9.5

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational ideas only, and they do not establish the financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.