Klaytn Price Surged 25%, Will KLAY Price Hold The Higher Levels?

• 1 Klaytn price surged 25% on a single day and witnessed surge in buying volume.
• 2 KLAY price breakout of the 50 and 20 day EMA shows uptrend.
• 3 Klaytn crypto price had shown a forward range expansion.

Klaytn price shot up 25% and witnessed a massive surge in the buying volume indicating that buyers are returning to the bullish track. KLAY price breakout of the 50 and 200 day EMA means that bulls are trying to reverse the positional trend in the upward direction. However, the confirmation of the trend reversal will come only when the bulls are able to give the follow up momentum. KLAY crypto price consolidated in the previous month and formed a short term base near $0.2000. 

Klaytn price trading at $0.2632 with an intraday decline of -5.70% and 24 hour volume to market cap ratio is at 0.3213. The KLAY/BTC pair is trading at 0.00000937 with an intraday decline of -$5.54% which shows high correlation between the direction of both the pairs. 

In mid-February, Klaytn price showed the same type of wild spike and prices rallied about 70% in the short period of time. However, the up-move was a trap and rally halted at $0.3653 and ended up by forming a long tail bearish rejection candle pattern. Later, KLAY price began to decline by forming lower lows and dropped below both the EMAs. It confirmed that the previous up-move was a bull trap and prices lost all its previous gains. 

Is Klaytn Price Up-Move Sustainable?

Klaytn price consolidated for a few weeks near the demand zone and tried multiple times to regain the 50 day EMA but faced rejection. Recently, some aggressive buyers came forward and showed a wild up-move in a single day. 

KLAY price expanded upside and might continue to rise to test the previous high swing. Sustainability of the rally will increase when bulls push the price above $0.3500 level. Till then, prices are expected to consolidate in the wide with a bullish bias or may witness minor profit booking from the supply zone. Technical analysis suggests, Klaytn price is in the initial phase of trend reversal and more upside is possible.

What if KLAY Price Drops Below $0.2000? 

KLAY price faced minor rejection from previous day high which shows bears are still active in the supply zone. However, if the Klaytn price drops below $0.2000 then, bears may try to drag it down toward the yearly lows. Technical indicators like MACD had generated a positive crossover and histogram bars on rise indicate bullish momentum to continue for some more time. The RSI at 58 denotes strength and buyers returning to the track. 

Conclusion

Klaytn price surged 25% and created a positive hope for the bullish trend reversal. KLAY price is trying to recover its previous losses but it will be difficult for the bulls to dominate in the supply zone. Technical analysis suggests, Klaytn price is in the initial phase of the trend reversal and confirmation is still awaited.

Technical levels

Resistance levels : $0.3200 and $0.3653

Support levels : $0.2000 and $0.1500

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.