KNCUSDT.1DAfter examining the KNC/USDT daily chart you provided, here is my in-depth technical analysis:
The KNC/USDT pair has demonstrated a significant downward trend starting from a high point in July 2024, and it has been making lower highs and lower lows, a classic sign of a bearish trend. The price has recently formed what could be seen as a descending triangle pattern, marked by a flat support line and a downward sloping resistance line, which usually indicates a continuation of the downward trend.
Key Levels to Watch:
Support 1 (S1) at $0.4015 is critical, as it's where the price has bounced a few times, showing some buyer interest at this level. A break below this could intensify the bearish sentiment.
Resistance 1 (R1) at $0.5203 and Resistance 2 (R2) at $0.5892 are important as potential reversal points if the price were to make a bullish turnaround. R1 is particularly pivotal because it aligns with recent peaks and the downward trendline, making it a robust barrier to watch.
Technical Indicators:
The Moving Average Convergence Divergence (MACD) is below the signal line and close to crossing into positive territory, which may indicate a weakening of the current bearish momentum. However, the histogram is still very near the zero line, suggesting that any bullish momentum is not yet strong.
The Relative Strength Index (RSI) is around 46, slightly below the neutral 50 mark, indicating that the selling pressure is still present but not overwhelmingly so.
Current Price Situation: The current price of approximately $0.4450 sits just above S1, underlining its importance. The market's reaction to this support level in the coming days will be crucial.
Strategic Outlook: Given the chart's indicators and patterns, my approach would be one of cautious observation. If the price holds above S1 and we see a bullish MACD crossover along with an RSI move above 50, there might be scope for a short-term bullish entry with a target at R1. However, this would require confirmation in the form of a clear volume-supported price rise.
Conversely, if S1 is broken decisively on high volume, it would likely signal a continuation of the bearish trend, possibly reaching new lows. In this scenario, setting a stop-loss just above the last minor high or the downward trendline would be prudent to manage risk.
As always, combining these technical insights with broader market news and sentiment analysis will be crucial for a rounded trading decision. Monitoring any significant news related to Kyber Network and the broader crypto market will also help in making informed trading decisions.
