Komodo has surged significantly in trading today as the privacy-focused coin rose +7 points on the new China Center for Information and Industry Development (CCID) rankings, released yesterday.
The leaderboard, which contained over 31 different crypto projects, is arranged in order of which platform offers the best innovation, technology and applications. It is widely regarded as one of the leading insights into trending Chinese crypto-trading and already has a reputation of elevating bullish market sentiment.
This has come at a great time for KMD as the token only recently found the bottom along its base support at 17,500 Sats after having been stuck in a bearish decline for over three months.
Could this be the start of a new bullish phase for Komodo? Or was the sudden surge in price a bull trap primed to catch out eager investors? Find out below.
The Story Right Now
KMD has already corrected back down to the 0.886 fib support after failing to hold onto its fleeting gains from the opening bull run. During this brief frenzy, buying momentum springboarded the asset far beyond the downtrending resistance of the falling wedge pattern that had been holding KMD in a bearish decline, up over the 0.786 fib level and towards the next 0.618 level above.
Candle activity has slackened right now since this early morning push and is collecting just around the 20,000 Sats mark. This could be an early signal of gathering bulls or it could just be the remnants of a pump and dump where short-term traders have already taken profit and moved on elsewhere.
Looking at the indicators over a closer 1hr range, we can actually see a number of promising signs which may be hinting at a delayed bullish continuation over the short-term.
- We almost have a ‘golden crossover’ between 50/200 EMA right now which is a strong bullish signal when it does.
- The CMF is starting to cross above the zero line which is another good indication of increased buying pressure.
- RSI has settled back into the upper half of the channel after spiking into the overbought region above. This provides KMD with a good platform to run again should support gather for a second time.
Komodo Price Targets
All price targets are set from the 0.886 fib level at the 20,0316 Sats mark.
Price Target 1: The first price target for this asset will be a recovery to the 22,000 Sats (8.27% ROI)
Price Target 2: From here we are expecting the bulls to eye down the 0.786 fib resistance above at 24,786 Sats as the next target (12.16% ROI).
Price Target 3: The top target for this target is way up towards the 0.618 fib level at 26,935 Sats, where the asset will meet its strongest resistance going forward. This is a long-term target for Komodo and will be a realistic target once the project’s BarterDEX exchange officially goes live.
This article appeared first on Cryptovest
