KuCoin Token (KCS) Price Analysis: Approaching Critical Resistance, Will Bulls Break Out?

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

KuCoin Token (KCS) has seen a significant recovery after a prolonged downtrend from its peak at around $29 in late 2021. Recently, KCS rallied to reach $10.76 on November 4, 2024, as it approaches a critical resistance level.

A closer examination of the KCS price chart reveals an interesting technical scenario. After multiple corrective waves, the price fell to around $4 in September 2023, showing a potential bottom for this cycle.

From there, KCS began a notable recovery, breaking through several resistance levels, the most significant of which was the descending trendline from the all-time high. This breakout occurred on October 28 as the price closed above the descending resistance, indicating a shift in the market structure.

As the price continued to rally, it faced another crucial resistance level around $9.65, which corresponds to the 0.382 Fib retracement level from the recent drop. KCS broke above this resistance on November 3, opening the way for a further advance.

On November 4, KCS rallied to reach $10.76, approaching the descending resistance line defining the bearish structure. The RSI is also in 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.

After notching the recent high at $10.76 on Aug 5, 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 (0.236 Fib and 0.382 Fib).

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 the 0.5 Fib extension at $11.16, with a further extension reaching up to $12.75 based on Fibonacci projections (1.27 Fib).

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 the price action, KCS could have started a five-wave impulse on Aug 5, 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.