The KuCoin (KCS) price is currently trading within a long-term bullish pattern. A breakout will confirm that the price has bottomed out, and a strong rally is likely to follow.
Long-Term Bullish Pattern
The KuCoin (KCS) price has been trading within a descending parallel channel since November 2022. This is a long-term bullish pattern, typically leading to a breakout in most cases.
In fact, the KCS price experienced a significant increase after bouncing up from the channel’s support line during the week of August 28 to September 3 (green arrow). Currently, it is in the process of forming a three white soldiers pattern (green ellipse).
This pattern indicates a strong shift in market sentiment and has the potential to trigger a new upward trend.
The weekly RSI (Relative Strength Index) also supports the start of a new uptrend by surpassing the 50 level and sloping upward.
If a breakout occurs, the KCS price could rise to the next long-term resistance zone at $11, which is 57% higher than the current price.
Daily Outlook
The daily chart reveals a strong resistance zone at $7.5, formed by horizontal resistance and the channel’s resistance line.
Therefore, the bearish side is likely to strongly defend this zone.
The daily RSI has entered into the overbought territory, indicating that the upward momentum is currently excessive. Furthermore, it may create a potential bearish divergence if the KCS price is rejected from the $7.5 region.
If this happens, the KCS price might retest the previous resistance at $6.3 before continuing the uptrend.
Conclusion
Technical signals suggest that the KuCoin (KCS) price may have initiated a new uptrend. A break above the descending parallel channel would confirm this.
However, the KCS price might experience a correction or consolidation below the $7.5 resistance zone before resuming the upward trend.
Disclaimer: Please note that this article is for informational purposes only and should not be taken as investment advice. As an investor, it is important to do your own research before making any decisions. We are not responsible for any investment decisions you make based on this information. Not Financial Advice.
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