KNC - King of Bear markets went ATH. What's next?** When I published this idea the boxes didn't show what they imply. The upper box is supposed to represent a level to enter. The lower box is where your SL should be just in case. It's roughly 6% risk
Market's volume has been pretty bad. Despite that, KNC has been showing a very strong move upwards and even cleared previous ATH yesterday. A few things to consider:
Kyber team has been working together with a few other projects, AVAX being a strong one. If this momentum keeps going, this might have a positive effect on KNC's value
Opening a position near ATH is usually not a good idea. I'm personally bullish, but I would wait for a real retracement before entering, even if it means missing out.
KNC is a coin with low total supply. In comparison to some other coins, it's not very hard to push. tip: easy to pump also means easy to dump. Manage your risks.
We're in the weekend right now. Fib levels might not get respected.
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Personally I prefer relying on fib levels but I must admit that I don't think KNC has really started retracing yet after yesterday's movement. There's quite potentially forming a bullish flag:
In that case it could bounce up and down for another cycle before continuing upwards. The next 4h candle will probably move BB SMA level towards 3.61~ level too.
The risk of trading here
In my opinion, 3.61$ is a logical place to enter into a long. The risk of trading here is that you are opening a position near previous ATH.
The price action on weekly is very strong and shows potential for a breakout beyond previous ATH. Just consider that, since we're near ath, a rejection from this level could be quite devastating:
I honestly don't believe this is likely since weekly is showing signs of continuation.
Fib extension
For my own entry I used this fib extension to determine where the first leg up would be (3.4926$). this played out well. I haven't closed my position yet and I think I need to re-evaluate extension fib on a different time frame, but I thought it would be useful to include these levels since they played out before.
Hope this helps! Trade safe.
