After a somewhat rocky 2022, the crypto market is off to a promising start in January as leading digital assets Bitcoin and Ethereum overcome key levels. The crypto market cap bounces back above $1 trillion. The positive sentiment has had a spillover effect, taking most altcoins on a rally through the past few sessions.
But one of the quiet beneficiaries of the rebound from the bear market conditions has been centralized exchange tokens. KuCoin Token (KCS) is one such altcoin that has recently enjoyed a solid performance. Like Bitcoin and Ethereum, KuCoin’s KCS has also registered double-digit gains and enjoyed high trading volumes in the past month.
Under typical market conditions, the strong performance of CEX tokens like KCS would come as no surprise - such crypto assets perform well when exchanges enjoy high trading activity and volumes. However, in the wake of the FTX crisis in the last quarter of 2022, this category has experienced considerable downward pressure regarding investor confidence.
The bullish moves in KCS/USDT reflect the rising levels of trading volume and investor activity on KuCoin, the People’s Exchange. The home to crypto gems has seen a significant uptick in trading activity across the board, not only in leading coins but also new altcoins across a multitude of categories ranging from DeFi and NFTs to metaverse and GameFi.
ICYMI: Here’s a recap of last year’s performance in the KuCoin 2022 Annual Review.
The recent gains in exchange tokens like KCS also indicate a return of trust among investors in centralized exchanges. This was one of the biggest challenges that afflicted the crypto market and crypto enthusiasts amid the downfall of FTX.
As of 31 January 2023, the KuCoin Exchange has reported a 24-hour trading volume exceeding 2.6 billion USDT. Ranking among the top 5 cryptocurrency exchanges per data on Coinmarketcap, the platform supports over 700 digital assets and over 1,400 markets.
Read our weekly crypto analysis report to know more about what to expect from Bitcoin and the overall market this week.
KCS/USDT Technical Analysis
Regarding KCS’ technicals, we can see that the cryptocurrency has been on an uptick since December 22, with a more highlighted uptick starting on Jan 8. The cryptocurrency managed to increase its price from $6.26 and all the way to $8.22 — a 33.78% increase.
KCS/USDT Chart on the 4-Hour Timeframe
However, a mix of KuCoin’s positive outlook compared to other exchanges, as well as a break of the bull flag on January 20 pushed KCS closer to its major resistance level of $10-$10.485.
Before attempting to break that level, KCS has one more resistance level, sitting at $8.45, which it may attempt to break in the following days.
On the other hand, its support levels lay at just under $8 and in the area below it all until $7.426.
Find out how to buy KuCoin Token (KCS) on KuCoin in four simple steps!