Disclaimer: The knowledge offered doesn’t represent monetary, funding, buying and selling, or different forms of recommendation and is solely the author’s opinion
- The New York lawyer normal filed a lawsuit in opposition to Kucoin.
- Kucoin’s worth motion broke beneath key help after the information of the lawsuit.
Kucoin change’s native token, Kucoin [KCS], might face elevated promoting stress amidst the present lawsuit. New York’s lawyer normal, Letitia James, has shifted focus to the change as a part of her spirited crackdown on unregistered cryptocurrency platforms.
On 9 March, the AG filed an official lawsuit in opposition to KuCoin for failing to register as a dealer or seller in addition to “incorrectly” presenting itself as an change.
Learn Kucoin’s [KCS] Value Prediction 2023-24
At press time, KCS had breached a key $8.123 help that might appeal to extra aggressive promoting and provide extra shorting alternatives at sure ranges ought to bearish sentiment persists.
Can bears take pleasure in extra alternatives?
Supply: KCS/USDT on TradingView
In mid-January, KCS consolidated between the $7.519 – $8.123 vary. It flipped the construction into bullish on the finish of January earlier than dealing with a worth rejection at $8.894. However the $7.841 checked the drop and provide a powerful restoration round mid-February, resulting in a brand new excessive of $9.192.
On the time of writing, KCS had damaged key help ranges, together with a vital one at $8.123 that might induce bears to behave extra aggressively. Due to this fact, the worth motion might retest $7.841 or breach it and transfer south to different help ranges.
Bears may very well be offered with two attainable commerce outcomes. First, shorting the token with a goal of $7.841 and a cease loss above $8.123.
The second possibility is concentrating on the decrease help stage of $7.519 if bears clear the hurdles at $7.841 and $7.682. The second possibility has a better RR than the primary.
Alternatively, bulls might dent the bearish sentiment in the event that they defend $8.123 by way of a every day candlestick shut above the extent. However bulls should clear the hurdles at 200-day EMA ($8.347) and 26-day EMA ($8.511) to achieve leverage.
Is your portfolio inexperienced? Try KCS Revenue Calculator
The RSI (Relative Power Index) slid into the oversold territory whereas the OBV (On Steadiness Quantity) confirmed a downtick, indicating promoting stress elevated amidst declining buying and selling volumes.
KCS noticed a latest sharp spike in change outflow regardless of the destructive sentiment
Supply: Santiment
KCS recorded a latest spike in change outflow, exhibiting short-term accumulation of the token at its earlier low worth stage. As well as, a drop in provide on exchanges on 7 March confirmed the short-term accumulation.
Nevertheless, the weighted sentiment was destructive at press time and will see a spherical of offloading after the information of the lawsuit if traders dump at a loss.
