On May 12th, the Kucoin (KCS) price bounced back from the new lower low of $9.34 with a morning star candle. Moreover, the KuCoin exchange report of almost 6 million new users in Q1 of 2022 and the ongoing recovery sentim21ent bolstered the bullish pullback to the $15 mark. However, multiple technical resistances concentrated at this level reflect the continuation of the prevailing trend.
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Key Points:
- The KCS price faces multiple resistance at $15.
- KuCoin users surged by 491% YOY during Q1 2022.
- The intraday trading volume of the KuCoin token is $12.3 million, indicating a 53.5% hike.
Source-Tradingview
The Kucoin (KCS) price wobbled in a consolidation phase during the last three months, stretching from $21.3 to the $17.1 mark. The coin traders trapped in this range witnessed excessive buying or selling getting absorbed at extreme levels.
However, the early May bloodbath in the crypto market bolstered the sellers to break the bottom support ($17.1). The release of trapped selling momentum and forced liquidation of buyers caused a strong sell-off that sent the altcoin below the $15 support level from January’s bottom.
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As a result, the KCS price reached a new lower low of $9.34, reflecting a 45% loss. Furthermore, the recent recovery sentiment in the market has surged the price 58% higher to $15. However, multiple resistance levels aligned at this level, such as 0.5 Fibonacci retracements and the 20-day EMA, suggest significant supply pressure ahead.
Furthermore, the bullish reversal under descending volume activity suggests a high possibility of price reversal. Therefore, if the sellers succeed, the KCS price will plunge and revisit the $11 mark.
Alternatively, a possible bullish breakout from $15 may kickstart a recovery rally.
Technical Indicator
The 100-day and 200-day EMAs are nearing a bearish crossover, which indicates a significant sell signal for KCS traders. Moreover, the 20-day EMA located at $15 resistance will assist the sellers in reverting the recovery rally.
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Despite a significant bullish reversal in price action, the ADX slope displayed a minor correction, indicating the bearish momentum remains intact.
- Resistance levels– $15 and $17.7
- Support levels– $13.5, $11
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