- Kyber Network price consolidates in a descending triangle pattern after surging nearly 70% in a little 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 breaches the hypotenuse at $2.80
Kyber Network price has recently entered a bearish consolidation phase after massive gains. Now, KNC could drop before a clear trend is established.
Kyber Network price eyes a lower low
Kyber Network price surged nearly 70% between March 16 and 18 as it broke out of a head and shoulders pattern. At the time of writing, KNC seems 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, bounce off the horizontal support at $2.60. By drawing one trendline connecting the swing highs and the other along the demand barrier, an ascending triangle pattern seems to form.
The setup forecasts a 22% downswing, determined by measuring the distance between the pivot high and low and adding it to the breakout point at $2.60. Therefore, a breakdown of the triangle’s base puts Kyber Network price at $2.02.
Adding credence to this bearish outlook is the recently flashed “sell signal” by the SuperTrend indicator.
While the bearish outlook seems to be set in stone, investors need to note that the 50, 100, and the 200 four-hour moving averages (MA) at $2.5, $2.34, and $2.1, respectively, are present below the descending triangle’s base and could actively deter downward movement in KNC’s price.
While the 50 and 100 four-hour MA might not pose a threat, the 200 four-hour MA could put a stop to the downtrend.
KNCU/USDT 4-hour chart
On the other hand, a bounce from any 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 surge approximately 20% to retest its recent top at $3.35. During this upswing, Kyber Network price could make a pitstop at $2.98.
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