KLAY Price Eyes A 40% Hike If This Level Breaks Today

On Jan 17, 2024

KLAY price action shows a bullish cycle within a descending channel, teasing a breakout rally.
The Klaytn price shows a remarkable 17% jump overnight, forming a bullish engulfing candle.
Considering the buyers manage to surpass the overhead resistance trendline, the breakout spree can reach $0.30.

With a short pullback following the remarkable jump of more than 120% in Q4 2023, the KLAY price trend forms a bearish channel. In the long-term picture, Klaytn shows a correction to the 61.80% Fibonacci level from the height of the $0.25 mark.

The bearish dominance at the psychological mark of $0.25 led to the previous downfall. However, the recent comeback shows a strong bullish momentum in action and is ready for a trend reversal.

Take a look at our KLAY price prediction for more information on the long-term price projections.

Source- Tradingview

With the recent crash of 35% in KLAY price over the past few weeks, the buyers are set for a trend reversal with an overnight jump. Currently, the bullish reversal reclaims the 200-day EMA and shows an overnight jump of 17% to challenge the overhead trendline.

Further, the bullish reversal crosses the 23.60% Fibonacci level and reclaims the $0.20 psychological barrier. However, the higher price rejection leading to long wicks delay the bullish breakout.

Currently, the KLAY price trades at $0.226 and forms a Doji candle with minimal move except for a long wick formation. Thus, the daily candle reflects a strong overhead supply and warns of a reversal.

Technical Indicators:

RSI Indicator: The daily RSI line shows a bullish trend continuation, crossing the halfway line, reflecting a growth in positive momentum for Klaytn.

EMA: The 50D EMA regains a bullish stride and restarts the positive trend. Further, this adds dynamic support in the picture to support the Klaytn price uptrend.

Will The KLAY Price Give A Bullish Break?

KLAY price is showcasing a bullish trend in motion with the overnight recovery and teases a breakout shortly. However, the prominent resistance trendline may delay the breakout event. However, the recent support for increased trading volume bolsters the breakout thesis.

In case the buyers manage to surpass the trendline, the breakout rally can surpass the previous swing close at $0.25. In doing so, the path to $0.30 will be clear.