Klaytn (KLAY) price has increased by 110% since Oct. 21 and broke out from a descending resistance line in the process. It is currently trading between crucial horizontal support and resistance levels. The ensuing breakout/down from these levels will likely determine the direction of the future trend.
KLAY price decreased since reaching a high of $0.513 on May 23. The downward movement led to a minimum price of $0.120 on Oct. 21. The Klaytn price began an upward trend shortly afterward and broke out from the line two days later.
The breakout led to a high of $0.286 the same day and a slightly lower high of $0.270 on Oct. 27. In both cases, the KLAY price was rejected by the 0.382 Fib retracement resistance level and created a long upper wick (green icon).
Even if the Klaytn price breaks out from the $0.270 area, there would be stronger resistance at $0.316, created by the 0.5 Fib retracement resistance level and a horizontal resistance area.
Therefore, until both these resistances are reclaimed, the KLAY price prediction cannot be considered bullish. However, it is worth mentioning that the daily RSI has moved above 50, a sign associated with bullish trends.
KLAY Price Shows No Discernible Pattern
The hourly chart does not show any definitive pattern. While the KLAY price may be following an ascending support line, there are two potential slopes (dashed and solid) that the line could take.
Currently, the steeper line coincides with the $0.223 horizontal support area. As a result of this confluence, the price will likely bounce if it drops to this level. Klaytn price broke out above this level in the previous 24 hours.
Conversely, a breakdown below this area would likely lead to lows between $0.178-$0.195, an area between the 0.5-0.618 Fib retracement support price levels.
Where Can Klaytn Price Go Next?
As it stands, the technical analysis states that the direction of the trend still seems unclear. A movement above $0.310 would be bullish, while a fall below $0.225 would be bearish. In the bearish scenario, the future Klaytn price could decrease to $0.178-$0.195.
In the bullish scenario, the next resistance would be at $0.505, created by a descending resistance line in place since the Sept. 2021 all-time high price.
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