KuCoin (KCS) costs ticked up within the early Wednesday session on July 7, partly due to an ongoing market rally throughout the top exchange-based utility tokens.

The 72nd-largest cryptocurrency peaked for the day at $14.847 earlier than correcting decrease on interim profit-taking sentiment. The transfer draw back accompanied respectable volumes, alerting that the sell-off momentum may proceed throughout the European and the U.S. classes.

The promoting sentiment appeared greater round $15, a concrete resistance stage from the April-Could session. Supply: TradingView

On the time of writing, the KCS/USDT trade fee was roughly $14, up greater than 100% on a month-to-date timeframe (MTD).

Due to this fact, KuCoin’s bearish correction appeared as an try and neutralize its overextended upside momentum. The cryptocurrency’s relative strength index (RSI) on one-day charts popped above 70 following its newest worth spikes, a studying that technical phrases the underlying asset as “overbought.”

The RSI continues to drift above 70, alerting about KuCoin interim draw back dangers earlier than it makes an attempt to interrupt above the technical resistance round $15 (as proven within the chart above).

Bullish setup

Conversely, the value breaking out of a descending channel vary to the upside raised its prospects of extending the bullish transfer additional greater. Because the charts under illustrate, KCS trended decrease whereas fluctuating inside a falling vary—this sample seems like a Falling Wedge

Falling Wedges are bullish reversal patterns. They arrive into the image when an asset’s worth motion varieties a conical form whereas sloping down and forming at the very least two response highs and lows. Adjusting the KCS/USDT’s decrease trendline transfer makes an analogous descending construction.

KuCoin Falling wedge setup. Supply:

Falling Wedge breakouts are technically skewed to the upside. Due to this fact, KuCoin’s newest resistance break, coupled with a spike in volumes, could be referred to as a bullish breakout, with its revenue goal lurking close to $19.751 (located so far as the utmost Wedge top).


KCS’s upside transfer, on the entire, appeared as part of an general worth rebound throughout the trade token markets.

Change tokens rally in tandem, besides SUSHI. Supply: Messari

Nonetheless, KCS markets confirmed strikingly lesser volumes within the earlier 24 hours in comparison with its exchange-token rivals. For example, the second-to-worst quantity logged by an trade token was roughly $620,000 (see Unus Sed Leo within the chart above). Then again, KuCoin’s 24-hour adjusted quantity was $63,531.

Skinny volumes imply that there have been fewer numbers of KCS tokens buying and selling. In flip, there was a decrease KCS liquidity throughout the markets. Consequently, an asset’s worth volatility rises in a low quantity market and makes it prone to the wilder upside and draw back strikes.

The favored analogy serves as further headwinds for KuCoin bulls as they try to say the Falling Wedge’s revenue goal.

KuCoin Shares, or KCS, serves as a utility token on the KuCoin trade. The platform makes use of KCS to reward customers for utilizing its companies, just like how Binance deploys BNB as a measure to supply customers reductions on buying and selling charges. Holders of KCS, in the meantime, additionally obtain a every day dividend, i.e., a KuCoin bonus, which equals 50% of the buying and selling charges on the trade.

As KuCoin strikes to change into a totally decentralized platform, it plans to make use of KCS for transaction charges. The trade additionally intends to purchase again and destroy half of KCS’s 100 million provide cap. The funds to facilitate the buyback, once more, comes from KuCoin’s buying and selling charges.

VORTECS™ information from Cointelegraph Markets Pro additionally started to detect a bullish outlook for KuCoin Shares worth hours forward of the July 7 rally.

The VORTECS™ Rating, unique to Cointelegraph, is an algorithmic comparability of historic and present market situations derived from a mixture of knowledge factors together with market sentiment, buying and selling quantity, latest worth actions and Twitter exercise.

KuCoin Shares VORTECS™ Rating (inexperienced) vs. KCS worth (white). Supply: Cointelegraph  Markets Pro

As seen within the chart above, the VORTECS™ Rating flashed inexperienced on July 6, 21:55 UTC, with a rating of 65 with the value persevering with to climb greater above $11.27. KuCoin-related tweet quantity queries additionally surged by 1,246.31% over the previous 24 hours.

The views and opinions expressed listed here are solely these of the writer and don’t essentially replicate the views of Each funding and buying and selling transfer entails threat, it’s best to conduct your personal analysis when making a call.