Bear markets have caused a significant tumble in strong altcoins, with the potential for further reductions in price. We see sales in bear markets directly proportional to rallies in bull markets, which is only natural. The potential for high earnings in cryptocurrencies wouldn’t exist without challenging market conditions. Recently, the altcoin of a popular exchange is garnering attention. Let’s delve into it.
KuCoin Token (KCS)
Exchange and fan tokens are relatively more predictable. The prices fluctuate constantly based on the growth of the exchange or the success of the team that the fan token is tied to. As bear markets have also impacted exchange earnings, KuCoin Token (KCS) couldn’t escape the losses. Unfortunately, while KCS price generally shows signs that usually lead to a jump, the long-term outlook appears negative.
The price of KCS has fallen below the long-term declining resistance line since reaching its all-time high of $28.77 in November 2021. This line has held its place for 546 days so far. Hence, as long as we see closings below this level, the long-term outlook remains bearish.
More recently, this line catalyzed the current decline by causing a rejection on April 23.
Should One Buy KCS Coin?
The weekly RSI supports the continuation of the decline. A price below the long-term trendline and a declining RSI are not good for this KCS Coin. Despite the negative outlook on the weekly chart, the daily chart provides hope for a short-term rally. The main reason for this is the apparent completion of the A-B-C corrective structure that began on March 18. If the structure is complete, an upward movement may occur after the correction.
The indicator has formed a bullish divergence and is moving upward. Bullish divergence occurs when a momentum decline does not follow a price decline. It generally leads to significant upward movements. In a possible bullish scenario, the KCS Coin price could jump to $8.8. However, it’s worth noting that this might not be sustainable, according to long-term readings.
Investors need to see closings below $7.24 to invalidate the bullish view. In this scenario, the target will again be $6.4.
