Hello traders!

The market seems to be rebounding in the first week of March 2020 after a rough second half to February 2020. The bull run is still in effect as we kick March off and there are some cryptocurrencies that are performing much better than others.

The coin I would like to talk about today has literally started to take off within the social media circuit as users start to understand the impact that the project will have on the decentralized world and this has had an unprecedented impact on the price for the coin. 

Today, I will be talking about the decentralized exchange based token - Kyber Network.

Take a look at the performance below;

Looking at the performance above, we can see that Kyber has been pretty static during 2019 as it increased by a small 20% throughout the year. However, we can see that during 2020, the cryptocurrency has truly taken off. Since the start of 2020, Kyber has managed to increase by an extraordinary 375% as it rises from a low of around $0.18 to $0.86.

And I truly believe that it will not stop there.

The cryptocurrency continues to gain integrations with high-profile companies that wish to use its decentralized trading features. The project is also gaining some major traction within the crypto social media world as users begin to understand what Kyber can truly offer to the entire ecosystem. Furthermore, they have a major upgrade planned that will align all incentives for each facet of their project which is expected to drop at some point during the middle of 2020. 

For the reasons stated above, and more discussed below, I believe that KNC has the potential to surge by a further 270% in 2020 to reach my target price of $2.50 at some point during the year. Bear in mind that the cryptocurrency has already moved by a total of 370% this year already so the total price increase for 2020 would equate to over 1250% if KNC does hit my 2020 target.

In this article, I’ll firstly cover a range of topics that I believe will influence KNC in reaching my $2.50 target during 2020 and then analyze KNC on the daily chart to highlight some areas of resistance on the way toward the target.

What Is Kyber Network?

Kyber Network is a decentralized exchange platform that allows users to trade in a decentralized manner without the need to deposit their assets with 3rd party centralized exchanges.

There a few decentralized exchanges (DEXs) popping up here and there, however, the difference with the Kyber Network is the way that it provides the on-chain liquidity. Instead of using a traditional order book, it uses a reserve system to provide liquidity to its traders at all times.

There are 4 components to the entire Kyber Network;

• Kyber Swap - The exchange mechanism that allows users to buy and sell different tokens without the need for deposits or order books. Furthermore, transactions are always instant.
• Kyber Developer - Allows developers to integrate any blockchain or project into the Kyber network’s liquidity pool. They can also build any type of financial dApp by using the development tools provided by the Kyber Network.
• Kyber Reserve - The reserve that provides liquidity to the entire Kyber network. 
• Kyber GO - A retail platform for token sales. 

To find out more about the background and functioning of Kyber Network, I recommend taking a look at the following two articles; here and here.

Are People Even Using Kyber?

Well, the answer is MOST DEFINITELY yes. And this is only the beginnings of the usage. The team recently announced that they had facilitated over $139 million worth of transactions through 576,000 on-chain trades...in February 2020 ALONE!

So, Why Is Kyber Growing So Much?

The simple answer is to do with the overall DeFi space. As Kyber Swap offers an easy-to-use integration platform for developers, there have been countless projects integrating this decentralized feature into their projects. The Kyber Network already has over 100 integrations and the projects and the numbers are steadily growing.

One of their most high-profile integrations was that with MyEtherWallet, a web-based Ethereum wallet that has over 4 million visits per month. The integration occurred during April 2018 and it allowed millions of users to convert tokens directly on the platform.

Well, MEW recently updated its interface and it now allows users to swap up to 70 different ERC-20 tokens, including WBTC, DAI, and TUSD. The new interface is designed to make it super easy for users with zero technical knowledge to easily swap ERC-20 tokens seamlessly.

Furthermore, projects that have integrated Kyber Swap are seeing exponential growth within their own ecosystems. For example, MEW saw a 240%% increase in transactions over the past month (February) and Fulcrum saw a 277% increase;

Staggering Growth Statistics

Data from Santiment shows that there is a SERIOUS BUZZ circulating the Kyber network right now. Just looking at the social volume, we can see a significant increase in the total number of mentions that Kyber has been receiving;

People are actually starting to realize the potential that the Kyber network has in hanging the decentralized finance industry. 

Users are starting to understand how the system actually works and the benefits that it has for just holding KNC for the upcoming staking features;

Furthermore, even with the latest price uptick, there are people who are certain that this is just the start of what Kyber has to offer;

The growth statistics do not stop there.

Additional stats from Santiment show a significant uptick in the network growth;

Furthermore, this is accompanied by more statistics from Santiment that prove the number of daily active Kyber Network addresses is increasing rapidly;

Kyber Katalyst Is On The Way

In mid-2020 the Kyber Network will be undergoing a major performance and useability upgrade known as Katalyst.

This network upgrade is slated to align incentives between stakeholders, liquidity providers, and dapp integrators.

The network upgrade will introduce a new staking mechanism in which users will be able to earn part of the fees collected from the activity on the network. It will also introduce the KyberDAO which will allow network participants to be able to vote and make decisions on future proposals for the network.

Developers will also be able to set their own fees so they can deploy their own business models and is intended to encourage more dApp developers to build with Kyber. 

You can find out everything about the upcoming upgrade here.

Kyber Network (KNC) Price Analysis

LONG TERM - DAILY CHART

What Has Been Going On?

Taking a look at the chart above we can see how flat Kyber was trading during 2019. This is a good testament to the project as it managed to trade sideways whilst the rest of the industry was pretty much collapsing toward the second half of 2019.

During the opening months of 2020 is when the market truly started to take off. We can see that during February, Kyber Network started to increase at an alarming rate to reach the resistance at $0.86, provided by a long term bearish .236 Fibonacci Retracement level. It has since dropped after reaching this level but we can certainly expect the market to continue much higher during the year.

Are We Bullish Or Bearish (as of March 2020)?

As of March 2020, we are most certainly bullish. Kyber Network would need to drop beneath support at $0.40 before being in danger of turning into a neutral market condition once again.

If the sellers do push beneath the support at $0.69 we can expect additional support to be located at $0.59 (.382 Fib Retracement), $0.517 (.5 Fib Retracement), ,$0.436 (.618 Fib Retracement), and $0.32 (.786 Fib Retracement).

Where Is The Resistance On The Way Up TO $2.50?

On the other hand, once the resistance at $0.86 is broken the next level of resistance is expected at $1.00. This is then followed by resistance at $1.05 (1.272 Fib Extension), $1.15 (1.414 Fib Extension), and $1.33 (bearish .382 Fib Retracement). This bearish Fibonacci Retracement level is measured from the April 2018 high to the December 2018 price low.

Above this, resistance can then be located at $1.56, $1.71 (bearish .5 Fib Retracement), $1.90, and $2.00. If the buyers continue to drive above $2.00, resistance is expected at $2.08 (bearish .618 Fib Retracement), $2.20, and $2.45. If they clear this resistance, they will be clear to make an attempt at my 2020 target of $2.50.

Conclusion

The Kyber Network is a sleeping giant that has only just stirred. Although the market has increased by over 300% already in 2020, there is still much room to grow higher as more people start to understand what the network can provide to the overall decentralized economy. Furthermore, with the Katalyst upgrade expected at some point during the middle of the year, this will be an extremely important driving force for KNC to reach my target price of $2.50 at some point during 2020.