Published: June 9th, 2022
KCS is the native token of the famous crypto trading platform, KuCoin, launched in 2017 as a profit-sharing token through the exchange. It is an ERC 20 token supported by many Ethereum wallets.
The unique feature of the KCS is the opportunity of having a passive income. Users holding more than 6 KCS can get a daily dividend from KuCoin’s daily trading fee revenue. However, the reward amount depends on how many tokens the client holds with the change in trading volume. Moreover, with the launch of DEX and KuChain, the native token KCS will be helpful for decentralized products.
Although the current market condition is not favorable for the broader cryptocurrencies, the recent V-shape recovery in the KCS/USDT price with a strong momentum above the 14.90 support level would be a buying factor. However, investors should monitor how the regulatory news is coming where any sign of crypto acceptance would initiate the bull run.
Let’s look at the complete future price direction from the KCS/USDT technical analysis.
In the KCS/USDT daily chart, the broader market context remained bearish, where the recent bullish recovery with an impulsive counter momentum above the 14.90 key support level is the primary bullish factor. However, the broader selling pressure is still valid as the price failed to make a new swing high above the 18.43 level. Bears appeared in the market with a bearish daily candle from the 18.43 to 17.73 supply zone, pushing the price down but with a corrective speed. Although the current price trades below the dynamic 20 EMA, the recent price action is yet to face a barrier from the 15.55 to 14.90 demand area.
The above image shows how the price trades below the dynamic 20 EMA with a corrective speed while the RSI shifts its direction after testing the neutral 50 level. In that case, any buying pressure with a bullish daily candle would increase the buying pressure by opening the possibility of testing the 70 RSI level.
Based on the current price structure, any bullish rejection from the 15.55 to 14.90 demand area with a daily candle above the dynamic 20 EMA would be a bullish opportunity in this pair. In that case, the primary aim is to test the 17.73 resistance level where a new swing high above the 17.73 level would increase the bullish pressure towards the 22.00 area.
According to the Ichimoku Cloud, KCS/USDT trades within a bearish pressure where the current momentum is not strong below the Kumo Cloud. In the future cloud, Senkou Span A moves with a downside pressure below the flat Senkou Span B, while the Lagging Span is below the price. In that case, investors should monitor the current price action, which is trading within a descending channel.
The above image shows how the buying pressure increases from the indicator window. The Traders’ Dynamic Index is a unique indicator showing buyers’ and sellers’ strength in the market where the current TDI line rebounded higher after testing the lower band. As the TDI line moved above the neutral 50 level, the possibility of reaching the upper band area with a bullish momentum is strong. On the other hand, the current price trades below the dynamic Kijun Sen, where the bullish recovery above the Kijun Sen line with an H4 candle is essential.
Based on the H4 context, investors should find a bullish H4 candle above the dynamic Kijun Sen to consider it a buy towards the 19.00 level. On the other hand, the break below the 15.50 level with a bearish H4 candle would open room for testing the 12.32 support level.
According to the KCS/USDT intraday chart, the current price trades within a corrective momentum where a breakout from the symmetrical triangle would increase the trading opportunity. However, based on the existing volume structure, any trading opportunity on the bearish side has a higher winning possibility as the highest trading volume in the visible range is above the current price at the 16.62 level. Moreover, the latest intraday trading volume is closer to the price, while the dynamic 20 EMA seems to be corrective.
The above image shows a bullish MACD Histogram with a corrective momentum from dynamic levels. In that case, an immediate bearish pressure from the dynamic Weekly VWAP resistance with a bearish H1 candle below the triangle support would be a bearish opportunity in this pair towards the target of the 16.63 level.
As per the current market context, KCS/USDT has a higher possibility of showing a rebound from the daily demand zone, but a failure to hold the price above the 14.90 level would resume the current bearish trend towards the 9.48 level.