Crypto Whales Are Loading Up — Are You?
New research shows the biggest crypto buyers are back. And this time? They could hold for the possibility that Bitcoin will surpass $100,000 in 2024. You don’t want to miss the next massive crypto bull run like we saw in 2020 and 2021. To know exactly what’s going on and what to buy… Get Access To Benzinga’s Best Crypto Research and Investments For Only $1.
Shares of Kandi Technologies Group Inc (NASDAQ: KNDI) have been extremely volatile over the past three days. After dropping 7.0 percent on Friday and 9.2 percent on Monday, Kandi stock came roaring back on Tuesday, jumping 6.6 percent. However, from a technical standpoint some major damage may have already been done.
The breakdown
Since breaking above $10 for the first time at the tail end of 2013, Kandi stock tested and found support at around $11.00 no less than six times this year, establishing a strong support line. After peaking right around $22.50 in March and then again in July, the stock had established a clear technical resistance line.
ENTER TO WIN $500 IN STOCK OR CRYPTO
Enter your email and you'll also get Benzinga's ultimate morning update AND a free $30 gift card and more!
The most troubling part about this fall for shareholders happened Monday when the stock dipped as low as $10.30, seeming to break below the well-established support line.
Death cross
As if the technical picture wasn’t bad enough, Kandi stock recently experienced its first Death Cross formation since early 2013. This bearish trading signal occurs when the 50-day simple moving average (SMA) crosses below the 200-day simple moving average and is used as a sell signal by some technical analysts.
Potential technical bright spots
There are two possible technical reasons for Kandi shareholders to hope for a bounce in the next few days. First, the last time the stocks relative strength index (RSI) reached similar leveles, the stock spiked over the following month.
Second, although volume was above average for Kandi over the past few days, it was not the type of massive volume that would typically accompany a major technical breakdown.
Kandi stock bounced back on Tuesday, but its behavior over the next couple of days is critical from a technical perspective. The next potential support line for the stock is around 2013 highs at $9.00 or so.
Crypto Whales Are Loading Up — Are You?
New research shows the biggest crypto buyers are back. And this time? They could hold for the possibility that Bitcoin will surpass $100,000 in 2024. You don’t want to miss the next massive crypto bull run like we saw in 2020 and 2021. To know exactly what’s going on and what to buy… Get Access To Benzinga’s Best Crypto Research and Investments For Only $1.