Tuesday, December 6, 2022
    HomeMarketKuCoin price has nosedived. Should you buy the KCS dip?

    KuCoin price has nosedived. Should you buy the KCS dip?


    The KuCoin Token value declined sharply through the American session on Friday. The token slipped to a session low of $19.34, which was its lowest degree since March twenty eighth this yr. KCS has declined by greater than 12% from its YTD excessive, bringing its whole market cap to over $1.4 billion.

    Is KCS a very good purchase?

    KuCoin is among the greatest corporations within the cryptocurrency business. The agency runs a well-liked change that handles billions of {dollars} every single day.

    Like different corporations within the business, KuCoin has launched its private token referred to as KCS, which is used to incentivize utilization of the platform. Holders of the coin often obtain a reduction each time they use it to commerce.

    The KuCoin value has held higher than different cryptocurrencies prior to now few weeks. This efficiency is usually due to the funds that the corporate raised final week. The agency raised $150 million from a bunch of traders akin to Soar Buying and selling, Circle Ventures, and Matrix Companions. It valued the agency at $10 billion.

    The brand new funding spherical was shocking for 2 fundamental causes. First, many enterprise capital companies are struggling as the worth of their holdings have fallen. For instance, Tiger International and Softbank have misplaced virtually $50 billion mixed this yr. 

    Learn our complete review of KuCoin right here.

    Second, the spherical was shocking for the reason that crypto business is struggling because it was evidenced in the newest outcomes by Coinbase. The agency misplaced over $400 million within the first quarter. Worse, its market cap has dropped to about $14 billion as a publicly-traded firm. At its peak, it was valued at over $75 billion.

    KuCoin intends to make use of the funds to broaden its enterprise to different sectors like Web3. This may embrace constructing decentralized exchanges, video games, and different merchandise.

    KuCoin token value prediction

    Turning to the four-hour chart, we see that the KCS value diverged from different cryptocurrency costs. On the four-hour chart, the coin fashioned a cup and deal with sample that’s proven in black. It has now pulled again and moved sharply beneath the higher a part of the sample. 

    It has additionally moved barely beneath the 25-day and 50-day transferring averages whereas the Relative Power Index has moved beneath the oversold degree. Subsequently, the sell-off will possible proceed as sellers goal the important thing help at $18. 

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