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Klaytn Rise Continues — Is KLAY on Track to Hit $0.24 Target by the End of 2023?

Published October 12, 2023 11:02 AM
Nikola Lazic
Published October 12, 2023 11:02 AM

Key Takeaways

  • KLAY rose by 14% from September 21.
  • The previous downtrend is likely to be ended.
  • Anticipating a breakout by focusing on the primary descending resistance.

On September 21, KLAY’s price hit a low of $0.10, marking the bear market’s bottom. Since then, a gradual uptrend has emerged, resulting in a 14% recovery that is still ongoing.

While this recovery may appear modest, it could be a sign of the bearish phase coming to an end. As momentum continues to grow, is there a possibility of a more substantial rally toward the critical resistance level at $0.24?

KLAY Price Analysis

On April 1, 2021, KLAY reached its all-time high of $4.31. However, a bearish trend emerged, pushing the price down to a significant low of $0.10 by September 21, representing a dramatic 98% decline from its peak.

In a descending channel
In a descending channel

Throughout the recent bearish cycle, the price followed a clear five-wave pattern within a descending channel. From October 29 of the previous year to February, it oscillated between $0.36 and $0.14.

However, a more pronounced decline began on July 14, leading to the recent bear market low. The emergence of a corrective WXYXZ pattern suggests that this bearish phase might be coming to an end.

Adding to this possibility, the RSI entered the oversold territory on September 20, reaching 19%. The last time we saw such a low RSI was on October 19, 2022, preceding a substantial 188% price surge.

KLAY Price Prediction

A more detailed examination of the 4-hour chart, specifically focusing on the wave structure starting from the February 20 high of $0.37, indicates the conclusion of a five-wave pattern, signaling the possible conclusion of the downtrend and the beginning of a potential bullish phase.

Uptrend could be starting
Uptrend could be starting

It’s important to note that in a corrective WXYXZ pattern, the Z wave typically follows a three-wave ABC structure rather than a five-wave impulse. Nevertheless, the wave structure alone hints at the potential for an uptrend, although bullish price action has yet to confirm this.

If the price manages to rise and break through the most substantial obstacle—the descending channel resistance—it could trigger a bullish sentiment.

Following such a breakout, the next challenge lies at the $0.14 level, a horizontal resistance dating back to the October 2020 to February 2023 range. A successful retest of the breached descending resistance would instill confidence in continued price appreciation.

A move to $0.24 becomes feasible if the price surpasses these levels and maintains its momentum. However, if the price encounters resistance below $0.14, a further decline becomes a more likely scenario.

Disclaimer

Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.

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