KLAYTN Price Prediction: Can Klay recover back to $0.3?

• KLAY/USDT is up 33.5% from its recent swing low.
• KLAY/USDT lost 53.4% since February.

KLAYTN is trading at $0.1726. The price is up by 1.30% in the last 24H. The 24H trading volume saw a decline of 10.29%. The Total Market Cap is $540,426,104.

KLAYTN prices are in turmoil. The downfall began in the month of February after getting a rejection from a daily resistance of $0.3370. The sell pressure got intense after the breach of a key support at $0.2104. KLAY has lost 53.40% of its value in the past 5 months.  The price saw a recovery of 33.5% after taking support from a crucial demand zone.

The Price is broke out of a falling wedge

The Daily Chart displays a bearish market structure where the price kept making lower lows. As the bears tried to breach the support zone of $0.1375, Buyers decided to step in and got a decent bounce. This trapped many bears who were betting on lower prices. Another noticeable thing is the formation of a falling wedge pattern.

Klay managed to break out of the falling wedge pushing the prices up. However, the volume is still low and this indicates the lack of conviction of the Bulls. There is a chance of a retest where the market can see a higher volume and Klay might enter the path of a bullish rally with a potential gain of 100% . This will slingshot the price right at the $0.3 mark.

The Bulls are trying to break 200 EMA

The 4H chart shows that the market structure has turned bullish on the shorter timeframe. The price barely managed to cross the 200 EMA. KLAY is trying to flip the trend and extend the recovery phase. While the price is rising, RSI is showing a small bearish divergence.

This means that the Bulls are losing steam. KLAY is taking the support of a trendline on the 4H. Such a structure can be interpreted as a bear flag and it is a common sight in a strong downtrend. In case of a breakdown, the market can expect a support zon between $0.1470-$0.1310. On the upside , Klay has to overcome the resistance at $0.2104 and $0.2792

RSI: The RSI indicator is currently at 66.64 on the 4H. The RSI is trying to cross MA on the downside. Expect a minor consolidation.

MACD: The MACD indicator is sticking with the signal line above 0. Expect some consolidation 

200 EMA: As observed, on the 4hr, the price is trading close to the 200 EMA(exponential moving average) . This a sign of sideways consolidation.

Conclusion:

KLAYTN has been struggling since the past few months. Prices came down to the key demand zone and did see some sort of recovery. A breakout of falling wedge is yet to be confirmed by volume. If the break out fails, expect an extension of the bear market. On the flipside, the breakout carries a potential of almost 100%. The market is volatile at present and while it may be a good opportunity to trade, it carries a bigger risk alongside.  Investors must follow proper risk-management to keep the losses in check.

Technical levels

Support Levels: $0.1470- Support 1

    $0.1310 – Support 2

Current Price: $0.1726

Resistance Levels: $0.2104- Resistance 1

          $0.2792- Resistance 2

Disclaimer:

The views and opinions stated by the author, or any people named in this article, are for informational purposes only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.