The Klaytn (KLAY) Price Falls Under Descending Resistance Line
The price of Klaytn (KLAY) has been experiencing a downward movement since reaching its yearly high on February 22. There are no signs of a bullish reversal in the weekly or daily timeframe, indicating that the downward trend is likely to continue.
Klaytn Price Reaches Three-Year Low
KLAY had been trading above the $0.145 support level since September 2022, bouncing within this range multiple times. However, in August 2023, KLAY broke down from this support and has been falling ever since. On September 20, the price hit a low of $0.111, the lowest since May 2020 but still higher than the all-time low of $0.057.
The previous price movement suggests a bearish trend due to the completion of an A-B-C wave structure that is facing upwards. Technical analysts use the Elliott Wave theory to analyze long-term price patterns and investor psychology, and the upward-facing corrective structure indicates a bearish trend.
RSI Supports Continuing Downward Trend
The weekly Relative Strength Index (RSI), used as a momentum indicator by market traders, supports the ongoing downward trend. The RSI was rejected at the 50 line and is currently falling, indicating a bearish trend.
If the decrease continues, the next support level will be at $0.051, which would be a new all-time low price. On the other hand, a sudden increase in momentum could lead to a 30% surge back to the $0.145 area, which now acts as resistance.
Short-Term Reversal Signs
The daily chart also shows a bearish trend, but there is hope for a bottoming out before reaching the $0.051 support level. The daily timeframe count suggests that KLAY is in the fifth and final wave of a downward movement, with a significant increase expected afterward.
However, until KLAY breaks out above its descending resistance line, it will remain in a bearish trend. Therefore, the price prediction for KLAY is bearish, with a potential drop of 35%-55%. A breakout from the resistance line would signal the completion of the correction and an upcoming upward movement.
Hot Take: Klaytn (KLAY) Price Continues to Fall as Bearish Trend Persists
The price of Klaytn (KLAY) has been steadily declining since its yearly high, showing no signs of a bullish reversal. With support levels being tested and the RSI indicating a bearish trend, it is likely that KLAY will continue to face downward pressure. However, if it manages to break out above its descending resistance line, there may be hope for an upward movement. Traders and investors should closely monitor these key levels and indicators to make informed decisions about their KLAY holdings.
By
By
By
By
By