Key highlights:
- KuCoin Token surged by a strong 10% over the past 24 hours as the coin broke the 21-day MA and broke $15
- KCS has been performing well since the cryptocurrency sector capitulation saw last week and has since surged 27% from the lows
- Additionally, KCS also managed to cleanly break above the 100-day EMA for the first time since early January 2022
| KuCoin Token Price | $15.70 |
|---|---|
| Key KCS resistance levels | $16, $16.82, $18, $19, $20 |
| Key KCS support levels | $15.50, $15, $14, $13, $12.33 |
*Price at the time of publication
KuCoin Token (KCS) is up by a very impressive 27% since rebounding from the market low of $9.55 last week. More specifically, KCS managed to find solid support at $10.72 and started to recover aggressively from there.
Today, KCS surged by a further 10%, allowing the token to break above $15 and climb above the 21-day MA level as it heads toward $16.
KuCoin, known as the “People’s Exchange,” recently surpassed the 10 million users milestone as it continues to become a leading, top-tier exchange. It is known as the People’s Exchange because KCS holders receive a share of the day-to-day revenues as a bonus.
The team released a KCS Whitepaper toward the end of March, which provides detailed explanations for the future development of KuCoin, the upcoming KuCoin Community Chain (KCC), the redistribution of the token, the deflationary mechanism, and the upcoming KCS token burn.
According to the whitepaper, 20 million KCS, worth around $400 million, would be directly burned. As a result, a total of over 54.1 million KCS tokens have now been burnt since inception.
The whitepaper also outlined that KCC would be a decentralized public chain that is intended to expand the use case for KCS. KCS itself would be used to pay for gas fees on the chain, and it is expected to bring the entire KuCoin ecosystem into the DeFi realm.
In other news, KuCoin recently announced that they would be adding some more tokens to be available to trade on their platform. These include top-ranked tokens such as SOL, APE, AVAC, SHIB, XCN, TRX, NEAR, MATIC, FTM, and ZIL. Support for these tokens will be added by May 24th, 2022.
With such strong fundamentals driving the token, it is no surprise that KCS has managed to rebound aggressively from the market capitulation seen last week. Moreover, with the upcoming burn and the launch of the KCC chain, holders of the token have a variety of reasons to remain optimistic and ride out the current bear market.
KuCoin Token is now ranked in the 56th position as it currently holds a $1.27 billion market cap.
KuCoin Token (KCS) price analysis
What has been going on?
Taking a look at the daily chart above, we can quickly see the impact that last week’s market capitulation had on the price of KCS. The token had broken above consolidation toward the end of March but failed to overcome resistance at $22. As a result, KCS largely traded within a range between $21 and $19 during April.
By the start of May, KCS dropped beneath $18 and continued to slide during the cryptocurrency capitulation. During the worst of the sell-off, KCS dropped as low as $9.55 (downside 1.272 Fib Extension). More specifically, KCS closed the 2022 low-day closing candle at $10.72, provided by a shorter termed downside 1.272 Fib Extension, and started to rebound aggressively.
It quickly broke above $13 and continued higher until meeting resistance at $15 this week. The resistance was penetrated yesterday, and KCS continued to climb above the 21-day MA level today as it makes its way toward $16.
KuCoin Token (KCS) price short-term prediction: Neutral
The aggressive 27% rebound has allowed KCS to turn neutral with the break above the 21-day MA. However, to remain neutral, KCS would need to hold above $15.50. A break beneath here would turn the market bearish again.
To turn bullish, KCS would still need to climb higher and break the resistance at $20, provided by the 200-day MA level. A clean break above $22 would confirm a longer termed bull trend has been established.
Where can we go from here?
It seems that the momentum is in the bull’s favor after the strong rebound from the market capitulation. If the buyers continue to push higher and break above $16, the first level of resistance is expected at $16.82, provided by a bearish .618 Fib Retracement.
This is followed up with resistance at $18 (50-day MA), $19, and $20 (bearish .886 Fib Retracement & 200-day MA level). If the buyers continue to drive KCS above $20, additional resistance lies at the March 2022 highs of $22.
On the other side, if the sellers regroup and start to push KCS lower, the first support now lies at $15. This is followed by support at $13, $12.33, $12, and $10.73 (downside 1.272 Fib Extension). Beneath this, additional support lies at $10, $9.55 (last week’s low), and $9.
What are the technical indicators showing?
The RSI dipped into extremely oversold conditions during last week’s market crash. The bearish momentum increased to levels that were not seen since December 2019. Since then, the RSI has been climbing as it made its way back toward the mid-line. This indicates that the previous bearish momentum has left and the momentum is now neutral.
It will be essential to see the RSI climbing above the midline to indicate that bullish momentum is starting to take control for the market for the recovery to continue.
Keep up with the latest KuCoin Token price predictions on CoinCodex.
