Kucoin (KCS) Gains 29% but Hits Descending Resistance, Halting Upward Momentum

Key Takeaways

• KCS faces critical resistance at $12 for bullish confirmation.
• A breakdown below $8.72 could deepen the correction.
• Wave 5 formation may continue if resistance is broken.

KuCoin Token (KCS) has recovered after a prolonged downtrend that began with its peak at around $29 in late 2021.

Recently, KCS reached $10.76 in early November 2024, approaching a critical resistance level, while the Relative Strength Index (RSI) indicator suggests possible overbought conditions.

This resistance level will be decisive, as a breakout could initiate a new bullish phase, while a rejection may trigger further correction.

KCS Price Analysis 

KCS’s price peaked at around $29 in late 2021 before entering a prolonged downtrend marked by a descending trendline.

After multiple corrective waves, the price fell to around $4 in September 2023, showing a potential bottom for this cycle.

Since then, KCS has notably recovered, breaking through several resistance levels, the most significant of which was the descending one.

In early November 2024, KCS rallied to reach $10.76, approaching the descending resistance line defining the bearish structure.

The RSI is overbought territory, which may indicate a short-term correction or consolidation phase before a potential breakout attempt. If KCS can break above this descending resistance, it could signal a reversal and the beginning of a new bullish phase.

Should KCS break out above the resistance, the first major target will be around the $12 mark, where previous highs and horizontal resistance intersect with the trendline. However, if rejection occurs here, we may see a retracement toward $8 or $7.39, a support area based on previous levels.

In a bullish scenario, a successful breakout above $12 would open the path for a broader recovery, with $15 as a potential target in the medium term. Conversely, a breakdown below $7.39 could invalidate the bullish structure and suggest a return to lower support levels around $3.98, especially if broader market conditions turn bearish.

So which one is more likely? 

KCS Price Prediction

Following the recent high at $10.76, KCS appears to be in a corrective phase, suggesting potential retracement to key support levels.

If the correction extends, initial support lies between $9.65 and $8.72, aligning these levels closely with Fibonacci retracement zones.

Holding above $8.72 would be crucial for preserving the bullish structure, setting the stage for a potential rally.

Should KCS maintain this support, the next upward target is around $11.16, with a further extension reaching up to $12.75 based on Fibonacci projections.

However, a drop below $8.72 could indicate a deeper correction, bringing KCS down to the $7.39 level before any significant rebound. The price action over the coming sessions will determine whether KCS can sustain its upward momentum.

 From Aug. 5, KCS could have started a five-wave impulse, with its recent high coming to the 1.618 Fib level, validating the end of wave four.

This is why its current descending move is anticipated as a corrective one before a breakout above the descending resistance leads to a higher high and develops wave five. 

About the Author

Nikola Lazic

Nikola Lazic is a cryptocurrency analyst and investor working in the industry since 2017. He holds a bachelor's degree in Sociology, which enables him to better understand the psychology behind the crowd´s positioning. Consequently his preferred analytical tool is Elliott Wave Theory in combination with price action analysis. Combining his experience in trading and investing with knowledge in content writing he strives to bring the most accurate and actionable information. Expertise: Cryptocurrencies, Technical analysis, Elliott Wave Theory, On-chain metrics, Research reports.

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