The KuCoin Token price declined sharply during the American session on Friday. The token slipped to a session low of $19.34, which was its lowest level since March 28th this year. KCS has declined by more than 12% from its YTD high, bringing its total market cap to over $1.4 billion.
Is KCS a good buy?
KuCoin is one of the biggest companies in the cryptocurrency industry. The firm runs a popular exchange that handles billions of dollars every day.
Like other companies in the industry, KuCoin has launched its personal token known as KCS, which is used to incentivize usage of the platform. Holders of the coin usually receive a discount whenever they use it to trade.
The KuCoin price has held better than other cryptocurrencies in the past few weeks. This performance is mostly because of the funds that the company raised last week. The firm raised $150 million from a group of investors such as Jump Trading, Circle Ventures, and Matrix Partners. It valued the firm at $10 billion.
The new funding round was surprising for two main reasons. First, many venture capital firms are struggling as the value of their holdings have fallen. For example, Tiger Global and Softbank have lost almost $50 billion combined this year.
Read our comprehensive review of KuCoin here.
Second, the round was surprising since the crypto industry is struggling as it was evidenced in the most recent results by Coinbase. The firm lost over $400 million in the first quarter. Worse, its market cap has dropped to about $14 billion as a publicly-traded company. At its peak, it was valued at over $75 billion.
KuCoin intends to use the funds to expand its business to other sectors like Web3. This will include building decentralized exchanges, games, and other products.
KuCoin token price prediction
Turning to the four-hour chart, we see that the KCS price diverged from other cryptocurrency prices. On the four-hour chart, the coin formed a cup and handle pattern that is shown in black. It has now pulled back and moved sharply below the upper part of the pattern.
It has also moved slightly below the 25-day and 50-day moving averages while the Relative Strength Index has moved below the oversold level. Therefore, the sell-off will likely continue as sellers target the key support at $18.
The post KuCoin price has nosedived. Should you buy the KCS dip? appeared first on Coin Journal.