The Volatile crypto market has trapped the KCS price within a narrow range, stretching from $18.8 to $17.7. However, such a definite range could kickstart a strong rally when the price pierces either of its levels. Furthermore, the governing ascending triangle pattern suggests the KCS price could sail beyond the $23.3 mark.
Key Points:
- KCS buyers face a formidable barrier at $21.1 resistance
- The bullish RSI divergence suggests a bullish breakout from $18.8 resistance
- The 24-hour trading volume in the KuCoin token is $4.13 Million, indicating a 23% loss
Source-Tradingview
The recent bear cycle from the $21.1 resistance tumbled the KCS/USDT pair by 16.5%. The altcoin hit the local support of $17.6 and managed to sustain above it despite the high volatility in the crypto market.
However, the buyers have been struggling to surpass the nearest resistance of $18.8 level for the past two weeks, forming a narrow consolidation range. The diminishing volume activity during the sideways rally suggests that the price is nearing the range breakout.
Assuming the bulls breached the $18.8 overhead resistance, the KCS price is likely to soar 12% to rechallenge the ascending triangle neckline at $21.1
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Contrary to the bullish thesis, if sellers violate the shared support of $17.6, descending trendline, and 200-day EMA, the altcoin would discount 20% by hitting the January low support at $14.
Anyhow, the traders can consider the area between the $18.8 and $17.7 as a no-trading zone, and it is recommended to wait for a breakout from either side.
Technical Indicator
Despite a range-bound rally, the RSI Indicator(52) slope trending higher suggests the rising bullish momentum could bolster an upside breakout from a narrow range.
The KCS price is sandwiched between the 50-and-200-day EMA. These EMAs coincide with the extreme levels of the range, providing an extra edge to the respective breakout.
- Resistance levels– $18.8 and $21.1
- Support levels– $17.7, $15
