KCS, the native token of cryptocurrency exchange KuCoin, is holding strong amidst a market-wide downturn. The altcoin has defied the broader market downturn with a 1% price increase in the past 24 hours.
This modest uptick may signal the beginning of a larger bullish trend, as technical indicators show strengthening upward momentum. This analysis holds the details.
Buying Pressure Intensifies for KCS
Readings from KCS’ daily chart suggest that bullish pressure is building. Notably, its Relative Strength Index (RSI) is currently at 58.32 and is on an upward trend, confirming the strengthening demand for the altcoin.
The RSI indicator measures an asset’s overbought and oversold market conditions. It ranges between 0 and 100, with values above 70 suggesting that the asset is overbought and due for a price decline. Converesly, values under 30 indicate that the asset is oversold and may witness a rebound.
At 58.32 and climbing, KCS RSI signals that bullish momentum is gaining traction and buying pressure is intensifying.
Moreover, the token’s Moving Average Convergence Divergence (MACD) confirms this positive trend. As of this writing, KCS’ MACD line (blue) rests above its signal line (orange).
An asset’s MACD indicator identifies trends and momentum in its price movement. It helps traders spot potential buy or sell signals through crossovers between the MACD and signal lines.
As in KCS’ case, when the MACD line is above the signal line, it indicates bullish momentum in the market. Also, traders often view this setup as a buy signal; hence, they might be prompted to buy more KCS tokens, further driving up its short-term value.
KCS Tests Critical Level as Bulls Aim for 58-Day High
KCS currently trades at $10.71, resting just below the resistance formed at $10.90. If the demand for the altcoin grows and it successfully flips this price barrier into a support floor, it could propel KCS to $11.77, a high last reached on March 3.
However, if KCS holders resume profit-taking, it could lose its recent gains and fall to $10.027.
What happened this week in crypto? It was a highly eventful week, as the Senate passed the GENIUS Act, France’s crypto kidnapping wave continues, and Israel-backed hackers targeted Iran’s crypto industry.
Canada also became the world’s second nation to approve an XRP ETF, and delays continue for an SEC v Ripple resolution. Find out all these stories and more at BeInCrypto.
This new stablecoin framework had several major setbacks in recent months, but fresh amendments helped generate bipartisan support. By the time of this final vote, political support was overwhelming.
The new war between Iran and Israel has been impacting the crypto market all week, but that’s natural for any geopolitical turmoil.
However, the conflict now takes place directly over the blockchain. Israeli-backed hackers breached Nobitex, an Iranian crypto exchange, stealing and then burning $90 million in tokens.
$90M drained from Iranian exchange Nobitex in a hack claimed by hacktivist group, Gonjeshke Darande.
This wasn’t just theft. It was a message.
Blockchain is now a geopolitical front line. Visual of the hack distribution from Merkle Science’s Tracker pic.twitter.com/7BT3t1nRYJ
Gonjeshke Darande (Predatory Sparrow) has been active for several years, disrupting Iranian economic activities on behalf of Israel. Nonetheless, this crypto hack represents a major escalation.
This precedent could spell worrying things for the industry’s future. So far, this war hasn’t been particularly painful for crypto, at least compared to other recent events. If multimillion-dollar token burns become a feature of future wars, it’ll traumatize markets worldwide.
A 23-year-old man was abducted, and his loved ones were extorted for €5,000 and his Ledger key.
A 23 year old man was kidnapped Tuesday while out shopping in Maisons-Alfort, France. The attackers called his partner and demanded his Ledger and 5,000 EUR in cash. She complied & he was released.
Before this incident, police believed that a single gang was behind the majority of these attacks. Thanks to cooperation with Morocco, several purported ringleaders were arrested in North Africa earlier in June.
However, this clearly hasn’t stopped the kidnappings. Either the gang is still active, or copycats are adopting the practice. Both possibilities are terrifying.
No Resolution for SEC v Ripple
Although the SEC v Ripple case is a topic of major interest for the crypto industry, it wasn’t resolved this week. The two parties have been jointly filing to settle the last cross-appeal, but Judge Torres is not cooperating.
Both parties are attempting to pause the appeals process, but lawyers are becoming skeptical that they’ll win a favorable decision.
In the newest saga of SEC v. Ripple, I don’t like this filing based on how obvious it was from Judge Torres’ last ruling that she was pissed. I recommended a long, detailed motion explaining the SEC’s failures in crypto regulation (with Commissioner declarations) and some… https://t.co/KTyiqxLnWo
In short, the biggest problem is that a crypto-friendly SEC can’t unilaterally reverse policies from the Gensler era.
It may be unfair that Ripple is forbidden from selling securities to retail investors, but Atkins’ Commission needs to prove that in court. Although the community remains hopeful, this setback may impact Ripple’s business for the foreseeable future.
“The OSC’s granting of a receipt for the Purpose XRP ETF prospectus reinforces Canada’s global leadership in building a regulated digital asset ecosystem. We’re proud to continue pushing the boundaries of what’s possible in the space,” claimed Vlad Tasevski, Purpose’s Chief Innovation Officer.
Hopefully, these developments will encourage Canada’s southern neighbor to follow suit. Prominent ETF analysts in the US recently claimed that an XRP ETF has a 95% chance of approval, but it hasn’t happened yet.
The crypto market continues to face a sustained period of capital flight. According to the latest CoinShares report, digital asset investment products experienced a fifth week of outflows.
It comes amid continued bearish sentiment, with Bitcoin (BTC) bearing the worst as seen in its price, which remains well below the $90,000 threshold.
Crypto Outflows Surge to Nearly $1.7 Billion
The report indicates that total crypto outflows reached $1.687 billion, bringing cumulative losses over this negative streak to $6.4 billion. This also marks the 17th straight day of outflows, the longest unbroken period of capital withdrawals since 2015.
Despite the sustained downturn, year-to-date (YTD) inflows remain positive at $912 million. However, the latest market correction and consistent investor withdrawals have resulted in a $48 billion decline in total assets under management (AuM) across digital asset investment products.
Per the report, the US remains the epicenter of the ongoing crypto outflows, accounting for $1.16 billion in outflows. This represents approximately 93% of all outflows during this negative streak. In contrast, Germany experienced a modest inflow of $8 million, indicating regional variations in investor sentiment.
Bitcoin continues to withstand the worst of investor withdrawals, with an additional $978 million in outflows over the past week, bringing its five-week total to $5.4 billion. Meanwhile, short-Bitcoin positions also saw $3.6 million in outflows, indicating a general decrease in bearish bets against the pioneer crypto.
While most digital assets have declined, XRP continues to attract investment. It recorded an additional $1.8 million in inflows, standing out as one of the few assets seeing positive momentum.
One of the most striking developments during this market downturn was the Binance exchange’s near wipeout of assets under management. A key seed investor’s exit drained almost all of Binance’s AuM, leaving the exchange with just $15 million in remaining AuM.
Meanwhile, this sustained sell-off follows a weeks-long pattern of negative sentiment. The previous week, crypto outflows hit $876 million, with US investors leading the charge in market liquidations.
Before that, outflows had already neared $3 billion, driven by weak investor sentiment and rising market fears.
The persistent crypto outflows and declining AuM figures suggest that confidence in the crypto sector is yet to recover. However, pockets of resilience—such as XRP’s inflows and minor gains in Germany, indicate that investor appetite has not vanished entirely.
