A quick rundown of the significant Kadena price levels and possible outcomes as markets react to bearish headwinds.
The cryptocurrency market has held up considerably well over the last couple of days, considering the increasingly hostile backdrop. Whilst Jerome Powell’s hawkish statement forced equity valuations sharply lower yesterday, cryptos, in general, are relatively stable. However, it seems logical that if risk-assets continue lower, the crypto market will follow suit eventually. However, even though the Kadena price is in a short-term downtrend, it continues to respect the longer-term uptrend.
Kadena (KDA), like many altcoins, reached a record high at the start of November. But after topping out at $28.58 on the 10th, the KDA token has been trending broadly lower. KDA is around 40% below the ATH at the current price, but it still holds a 1,000% two-month gain due to the rapid ascent in October. And whilst the performance is impressive, it also leaves Kadena vulnerable to heavy losses if the broader market succumbs to liquidation.
The daily chart shows the Kadena price is consolidating at horizontal and trend line support between $14.80 and $16.00. Although KDA is stable, the bullish momentum is fading, which should result in a test of trend support at $14.80 in the coming sessions.
In my opinion, as long as Kadena respects the uptrend, the outlook is positive, targeting the November 25th high at $21.40. In contrast, a close below trend support could trigger an extension lower towards October’s former all-time high of $9.20.
Presently, I would put the odds of either scenario playing at 50/50. However, due to the magnitude of the rally, if the downside prevails, the move could be violent.
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This post was last modified on Dec 02, 2021, 01:29 GMT 01:29