KCSUSDT Rising Wedge still holding. How to trade the break-outs.This is an analysis on the KuCoin Token (KCSUSDT), the native token of the KuCoin cryptocurrency exchange, which enables a profit-sharing model between the platform and its users. Today's analysis is on the 4H time-frame, where we'll be presenting the medium-term trend and the trading opportunities on certain levels.
** Technical Analysis **
The primary pattern we see is a Rising Wedge since the August 29 Low. The structured pattern of Higher Lows and Higher Highs (so far two of each) offers low risk sideways opportunities by buying at the bottom (where the price is at now) and selling at the top. Notice how all key MA periods, 1D MA50 (red trend-line), 4H MA200 (orange trend-line), 4H MA100 (green trend-line) and 4H MA50 (blue trend-line), trade within the Rising Wedge. Also its range is now firmly within the 0.382 and 0.618 Fibonacci retracement levels.
A break above the top of the Rising Wedge, if it comes with a candle close above the 1D MA50, can be taken as a buy break-out signal, targeting the 11.000 August 10 High. Similarly, a break below the Wedge, can be best taken as a sell break-out signal if the lower Support (of the September 07 Low) breaks, in which case we can target the lower Fib levels.
Keep in mind however that we are already past a 4H MA50/100 Bullish Cross, which last time it happened (July 15), KCS was still at the start of a 1.5 month rally. Also notice the 4H RSI Support Zone that is holding since June 18. It can offer a solid buy entry for quick short-term profits.
** Fundamental Analysis **
Overall, with a market cap of roughly $900 million, the KCS token is an innovative way for KuCoin to share 50% of the platform’s trading revenue with holders of the token on the exchange. In addition to receiving rewards in revenue sharing, KCS holders also enjoy fee discounts and the opportunity to participate in initial token offerings and other unique services offered by KuCoin.
Those are just a few reasons that make us consider the KuCoin token as one of the best long-term investments in the crypto market. KuCoin is one of the largest cryptocurrency exchanges in the world, with a user base that runs into tens of millions. An uptick in new market investors can increase the platform’s user base, increasing its revenues and the KuCoin Token price. The KCS token can also gain higher value in the future as the KCC ecosystem evolves and adds more decentralized applications. As KuCoin’s operations scale and evolve further, KCS could become even more lucrative as a digital asset to trade and HODL.
If you are a long-term investor, it would be in your best interest to buy now that the price is at a great discount, more than -70% from its All Time High.
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