- Kyber Network price is consolidating in a descending triangle after jumping nearly 70% in just over two days.
- If the demand barrier at $2.60 is breached, it could trigger a 20% correction to $2.02.
- A bullish scenario will come into play if KNC crosses the hypotenuse at $2.80
Kyber Network price recently entered a bearish consolidation phase after massive gains. Now, KNC could fall before a clear trend is established.
Kyber Network Price Eyes Low
The price of the Kyber network jumped almost 70% between March 16 and 18 as it emerged from an inverse head and shoulders pattern. As of this writing, KNC appears to be consolidating inside a descending triangle.
This technical formation has a bearish bias as aggressive sellers create lower highs. The swing lows, on the other hand, are bouncing off the horizontal support at $2.60. By drawing a trendline connecting the swing highs and the other along the demand barrier, an ascending triangle pattern appears to form.
The setup calls for a 22% decline, determined by measuring the distance between the high and low pivot and adding it to the breakout point at $2.60. Therefore, a breakdown of the base of the triangle places Kyber Network price at $2.02.
The recent “sell signal” from the SuperTrend indicator adds credence to this bearish outlook.
Although the bearish outlook seems set in stone, investors should note that the 50, 100, and 200 moving averages (MAs) at $2.5, $2.34, and $2.1, respectively, are present below the base of the descending triangle and could actively deter KNC’s downward price move.
While the 50 and 100 four-hour MA might not pose a threat, the 200 four-hour MA might end the downtrend.
KNCU/USDT 4-Hour Chart
On the other hand, a bounce from one of these levels that pushes Kyber Network price through the hypotenuse at $2.80 could indeed invalidate the bearish thesis.
In such a case, KNC could jump about 20% to retest its recent high at $3.35. During this recovery, the Kyber Network price may make a pit stop at $2.98.