Crypto News- Klaytn (KLAY) has been on a consistent downward trend since its peak in February 2022, breaking through a significant descending resistance line. Both weekly and daily charts show a lack of bullish signals, suggesting that this bearish trend is likely to persist.
Klaytn Hits Three-Year Low: What’s on the Horizon?
Recently, KLAY breached its long-standing support at $0.145, which had held since September 2022. Despite several bounces within this range, the trend reversed in August 2023, hitting a low of $0.111 on September 20. While this marks the lowest price since May 2020, it’s important to note that it is still above the all-time low of $0.057. This price movement aligns with a bearish outlook, attributed to the completion of an upward-facing A-B-C wave pattern, consistent with Elliott Wave theory.
The weekly Relative Strength Index (RSI), utilized for momentum analysis, supports the bearish sentiment as it dipped below the 50 threshold, indicating the potential for further declines. If the current trend persists, the next significant support level is at $0.051, representing a substantial 55% drop from the current price.
On the daily chart, despite the overall bearish sentiment, there’s a glimmer of hope in the form of a fifth wave within the downward movement. Once this wave concludes, there is potential for a substantial upward swing, targeting $0.074, which is a 35% decrease from the current levels. It’s worth noting that KLAY remains under a descending resistance line since its yearly high, underscoring the prevailing bearish trend.
In summary, the KLAY price prediction leans bearish, with a potential decline ranging between 35% to 55%. A decisive breakout above the descending resistance line is essential for a trend reversal. Nonetheless, Klaytn faces notable challenges in the current market landscape.
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