KCS Technical Analysis: Potential Reversal May Prolong Correction

The recent bull cycle in KCS price stalls at the resistance trendline of the falling wedge pattern. Under the pattern's influence, the coin price may extend its downfall for a few more sessions. However, it would eventually pierce the above trendline to ignite a new recovery rally.

Key Points:

Source - TradingView

KCS Technical Analysis

Amid the widespread correction in the crypto market, the KuCoin (KCS) price witnessed a bearish reversal from the $11 resistance and shaped into a falling wedge pattern.

In response to this pattern, the KCS price tumbled 16.5% in the past three weeks. On September 2nd, the coin chart showed a Doji candle at an overhead resistance trendline, indicating uncertainty among market participants.

Thus, if sellers continue to defend this trendline, a possible reversal from this resistance will prolong the ongoing correction rally. The resulting downfall could plummet the price 6.5% lower to hit the shared support of $8.6 and the bottom trendline.

However, the very nature of this pattern is to continue the bullish trend once the price breaches the overhead trendline. Therefore, the upside breakout of the trendline resistance will encourage buyers to reach the $11 mark.

Technical Indicators

The RSI slope crosses above the 14-day average line showing a certain degree of growth in underlying bullishness. However, the indicator value below 50% indicates an overall bearish sentiment.

A bullish crossover with a declining negative histograms indicates the sellers are losing their grip over the KCS coin.

Hence the technical indicator accentuates the buyer's attempt for recovery in the reign of a bearish trend.

Resistance Levels: $9.7 and $10.4

Support Levels: $8.6 and $8