KLAY Price Analysis: Token tanks more than 5%, is token heading for a retracement?

The token has formed a strong bearish candle on the daily time frame.
The pair of KLAY/USDT is trading at the price level of $0.2042 with a decrease of -5.75% in the past 24 hours.

The Klaytn (KLAY) token has broken out of the consolidation zone upward with low volume and currently the token is heading towards a retracement after the breakout. When the token retraces to the breakout level and then continues the uptrend, it is said to be a successful breakout.

KLAY token on the daily chart

After a rise in the token’s price, we can see a strong bearish candle form, this is not cause for concern because it is a retracement after a breakout. According to the daily chart, KLAY token is currently trading at $0.2042, a -5.75% loss in the last 24 hours. The token has crossed and sustained above the 50 EMA, and it is currently trading between its key Moving Averages, the 50 EMA and the 200 EMA. (Red line is 50 EMA and the blue line is 200 EMA). It remains to be seen whether the uptrend would continue after retracing to the breakout level.

Relative Strength Index: The asset’s RSI curve is currently trading at 57.51, and the value has declined significantly due to the token’s fall. The 14 SMA has been crossed downward by the RSI. If the token is able to continue its uptrend after retracing to the breakout level, the value of the RSI curve will rise once again.

Analyst view & Expectations

To keep the uptrend going, the token should hold around $0.1924. This is a strong confluence level since the 50 EMA is also trading at this level. Investors who missed the entry at the breakout have an opportunity to buy when the token takes support from the $0.1924 and continues the uptrend. Intraday traders, on the other hand, have a good opportunity to go short and aim towards $0.1924 and book profits based on their risk to reward ratio.

According to our current Klaytn price prediction, the value of Klaytn is expected to climb by 4.61% over the next few days, reaching $ 0.214564. Our technical indicators indicate that the current sentiment is bearish, with the Fear & Greed Index reading 61. (Greed). Klaytn had 20/30 (67%) green days with 11.74% price volatility in the previous 30 days. According to our Klaytn forecast, now is not the time to buy Klaytn.

Technical Levels

Major support: $0.1924

Major resistance: $0.2200 & $0.2330

Conclusion

Following the breakout, the token is likely to retrace or pullback, and for the breakout to be successful, the token must be able to sustain above the breakout level. Before acting, investors should wait for a clear indication.

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.

Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing