Kucoin (KCS) is up 16% Since September; Can it Sustain This Rally?

25 Sep 2023 by Crypto Presale 2 min read

Kucoin Token (KCS) is one of the top cryptocurrencies that has shown positive growth since the start of September, rising by 16% after weeks of massive price declines. The Kucoin token is up 4.89% in the last 7 days and up 9% in the last 14 days. This massive decline was due to the selloff that followed the negative news earlier this year. The crypto market got worried when Binance, Ripple and Coinbase faced regulatory issues, this had a negative impact on KuCoin too, causing many people to withdraw their money in the summer. However, despite these concerns, the SEC hasn't taken legal action against KuCoin.

Some people were spreading rumours that KuCoin might go out of business, which made the market very nervous. But it turns out, these were just baseless rumours meant to create fear, uncertainty and doubt (FUD). This caused the price to drop significantly. As people realised these rumours were untrue, Kucoin token is slowly starting to recover.

Technical Analysis

Daily Timeframe

Source: TradingView

In the daily timeframe, KCS is forming a V-shaped pattern, which shows that the buyers are back in action and they are trying to push the price up. However, there is a major resistance zone around the $4.75 region. Only a break and close above this region can fully confirm a change in trend from bearish to bullish. In addition, KCS is currently trading at $4.50, which is below the 50-day EMA ($4.68) and 200-day EMA ($6.8). This shows that the trend is still very bearish. Also, the RSI is currently at 47.73%, which means there are still more sellers than buyers.

4 Hour Timeframe

Source: TradingView

In the 4-hour timeframe, the RSI is presently at 58%, which shows that there are more buyers than sellers in this lower time frame. Similarly, KCS is trading above both the 50-day EMA and 200-day EMA, which means that the trend on this timeframe is bullish. However, there is a minor resistance zone around the $4.6 region. A break above this might allow KCS to rally to the key level around $4.75. In contrast, if the Kucoin token fails to break above this minor resistance and instead closes below the trendline (yellow line), this suggests a bearish continuation, and we could see the token fall back to the lows around $3.99.

Can Kucoin Token Sustain This Rally?

Kucoin has recently partnered with Stoic AI, a crypto trading app. This sort of partnership will bring more users to the Kucoin exchange platform, which will boost the trading volume of KCS and also increase the demand for Kucoin tokens. With the technical indicators showing positive signs of trend reversal for KCS, combined with this partnership, KCS might attract more investors, and the price could continue to go up.

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