KCS/USD - Downtrend continues as KCS searches for support! 🧐

As indicated in my last idea, Kucoin Token (KCS) made a bearish cross on the 3-day MACD, signaling that price is found in a downtrend. This was confirmed this week when KCS failed to rally higher and was pushed back down.

Key support: $20, $16
Key resistance: $23, $28 (ATH)

Unfortunately for bulls, KCS was unable to rally and has fallen to the $20 support level. If that will not hold the current downtrend, then the next support is found at $16. The resistance at $23 appears unlikely to be tested anytime soon.

Technical Indicators:

Volume: Volume decreased this week. The price action lacks conviction and the bears appear to have the upper hand as buyers are scarce.

RSI: The 3-day RSI continues to fall lower with lower highs and lower lows. As long as this continues KCS is in a downtrend.

MACD: As already indicated, the 3-day MACD is bearish and this is unlikely to change soon. Moreover, if KCS will not reverse the downtrend soon, then the MACD on weekly may also turn bearish. That would signal a major bearish reversal similar to BTC and ETH, that already had this signal.

Bias

The bias for KCS is bearish right now.

Short-Term Price Prediction for KCS

The current downtrend for KCS has only started and it is best to be cautious considering current market conditions. Both BTC and ETH show major weakness in the market and KCS may be under a lot of pressure due to this. Best to wait for signs of a reversal before turning bullish again. Until then, KCS has good support on $20 and $16.

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