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Komodo (KMD) Settles Down After 180% Increase in a Day

2 mins
Updated by Geraint Price
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In Brief

  • KMD has been following a descending resistance for 310 days.
  • There is support and resistance at $0.26 and $0.475.
  • KMD has completed a leading, expanding diagonal pattern.
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Komodo (KMD) is currently retracing after a sharp upward movement on July 13 which left a long upper wick of 42%. It could soon make another attempt at breaking out.

KMD has been falling underneath a descending resistance line since Sept. So far, this downward movement has led to a low of $0.158 in June. 

The price initiated an upward movement afterwards and increased by 180% on July 13. 

Despite this massive increase, the price failed to break out from the descending resistance line and created a long upper wick instead.

Such wicks occur after considerable selling pressure. Additionally, it validated the $0.475 horizontal area as resistance (red circle). 

So, the trend cannot be considered bullish unless the price manages to break out from both these levels.

So far, the resistance line has been in place for 310 days.

Ongoing resistance
KMD/USDT Chart By TradingView

Bullish RSI readings

The daily RSI does provide a more bullish outlook and adds legitimacy to the breakout attempt. 

The reason for this is that the RSI has been generating bullish divergence in the period between May 12 and June 18 (green line). Such divergences often precede sharp upward movements, as was the case for KMD. The RSI has also moved above 50.

Moreover, the price has moved above the $0.26 horizontal area, which is now expected to provide support in case the price retraces prior to another breakout attempt.

Daily divergence
KMD/USDT Chart By TradingView

Future KMD movement

Cryptocurrency trader @TehLammbox tweeted a chart of KMD which shows that the price is breaking out.

KMD Move
Source: Twitter

As seen in the previous sections, the price failed to break out and created a long upper wick instead.

However, the entire increase does look like a five-wave upward movement that has taken the shape of a leading, expanding diagonal, in which wave five is extended.

If so, it is likely that this is the beginning of an extended upward movement, aligning with the daily RSI readings.

Diagonal pattern
KMD/USDT Chart By TradingView

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Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

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Valdrin Tahiri
Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona School of Economics. Shortly after graduating, he began writing for several different cryptocurrency related websites as a freelancer before eventually taking on the role of BeInCrypto's Senior Analyst. (I do not have a discord and will not contact you first there. Beware of scammers)
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