KNC Technical Analysis: Early Reversal Warns Channel Fallout

The KNC price action displays a consolidation near the 200-day EMA, teasing a double top pattern forming with higher price rejection. The bearish candle with a 3.38% drop hints at a bearish downfall to the support trendline of the expanding channel. So, should you consider early profit booking in Khyber Network Crystal?

Key Points:

Source - TradingView

KNC Technical Analysis

The KNC prices display a phenomenal uptrend in an expanding channel, accounting for a 68% jump in the last two months. The buyers created this distinctive bullish pattern of the reversal from the $1.19 support level to reclaim the crucial daily EMAs and reach the psychological mark of $2.0.

However, the recent bull cycle from the 50-day EMA struggled to reach the resistance trendline due to the increased supply pressure above the 200-day EMA. Furthermore, the price action displays a double top pattern forming slightly above the 200-day EMA with multiple higher price rejection candles.

Currently, the daily candle shows a 3.04% price drop, dropping below the 200-day EMA, teasing a fall to the 50-day EMA close to the support trendline.

If the bearish momentum increases when the KNC prices hit the support lever at the $1.75 mark, the trendline fallout will drop the prices to $1.52. Hence, the increased supply pressure warns of a 25% downfall in market value if the buyers fail to regain trend control.

However, a bullish reversal in Kyber Network Crystal prices from the support trendline, a bull cycle rising above the psychological mark of $2.0, is possible.

Technical Indicators

The RSI slope showcases a bearish divergence in the nearly overbought zone as it drops below the 14-day SMA. Moreover, the MACD and signal lines hint at a bearish crossover, with the falling intensity in the bullish histograms. As a result, the KNC Technical Analysis forecasts an upcoming decline in market value.

Resistance Levels - $2 and $2.25

Support Levels - $1.75 and $1.52