While most major altcoins are still on the roll, Klaytn finds temporal support, bounced off it, and showed signs of recovery with a 6% increase. It may lead to another swing high if it continues to show strength.
Amid the ongoing sell-off, Klay also witnessed a massive decline in the past weeks. It charted more than 20% loss since the price started to fall last month.
During the period of the decline, the price broke through the $0.26 level earlier this month and fell consistently to reach a weekly low of $0.2 yesterday. Even though the price looks extremely oversold on the lower time frame, the bearish action doesn’t appear finished for now.
However, to some extent, the selling pressure seems to have been suppressed a bit on the daily chart following today’s slight bounce off that weekly low. The buyers are showing interest in the price. A continuous increase from the current trading level will activate an upside movement.
But it may resume pressure if the price fails to close above the weekly high. If such sentiment occurs, we can consider the diagonal trendline to provide support. As we can see, there’s still room for a decrease.
Klay has integrated into a layer 2 protocol that focuses on gamefi and metaverse.
Klay’s Key Levels To Watch
As solid support is yet to be established, we may need to consider lower levels if selling pressure resumes. Below the current low lies the $0.19 support level, which coincides with the diagonal trend line. The support level to watch for a breakdown is $0.153.
The current weekly low is considered temporal support. If the level holds firmly and provides a strong rebound, the resistance level to watch out for recovery is $0.266, which collapsed a few days ago. Above this level lies $0.318 and $0.376.
Key Resistance Levels: $0.266, $0.318, $0.376
Key Support Levels: $0.2, $0.19, $0.153
- Spot Price: $0.22
- Trend: Bearish
- Volatility: High
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any projects.
Image Source: karnoff/123RF // Image Effects by Colorcinch
