KuCoin token (KCS/USD) was among a handful of cryptocurrencies that posted double-digit gains on Monday. With a surge of about 20%, the token was only rivalled by the Trust Wallet Token in the top 100 list by market cap. The coin is native to the KuCoin crypto exchange.
KuCoin claims to be the world’s largest social trading platform. The exchange lists over 20 million global investors and more than 1 trillion USD accumulated trading volume. Over 700 coins are available on the platform.
While KCS traded at a high of $28 in November 2021, it has come crashing this year. The token trades at just $7.9. That’s a drop of more than 70%. The decline is still favourable compared to some cryptocurrencies, which have lost at least 90% of their value from their all-time highs.
The gains in KCS happen even though confidence levels on crypto exchanges remain low. In light of the concerns, KuCoin assured users of the safety of their funds. The company said it was working on the Merkle-tree proof-of-reserves as an accountability measure. Should the latest price jump reignite hope for further recoveries of KCS?
KuCoin token slowing down after meeting resistance
Source – TradingView
The latest price jump takes the KuCoin token near a resistance at $8.69. The token has slowed down near the resistance zone.
The MACD indicator remains deep in the bear zone. Although momentum is weak, the severity has lessened following the intra-day gains.
Should you buy KCS?
The intraday gains are positive for KCS, given that they come when cryptocurrencies are under pressure. However, the momentum could be unsustainable, given the inherent risks and $8.69 resistance. If you are buying KCS now, you should be ready for potential prolonged consolidation.