Bids for Klaytn’s native cryptocurrency KLAY spiked on Thursday after the South Korea-based public blockchain project confirmed its listing on Binance, one of the world’s top cryptocurrency exchanges by volume.
— Binance (@binance) June 24, 2021
The KLAY/USDT exchange rate surged 41.25% to an intraday high of $1.243. The pair’s massive move uphill accompanied a dramatic intraday spike in trade volumes — 28.68 million so far into Thursday versus 13.05 million in the previous session, validating the bullish sentiment across the Klaytn market.
The gains came on the prospect of Klaytn’s global expansion after its addition on Binance. So far, the option to trade spot KLAY was majorly available across heavily-regulated South Korean exchanges — particularly Bithumb — thanks to Klaytn’s affiliation with the regional internet giant Kakao.
Binance’s listing would introduce KLAY to wider markets, Klaytn recognized in the official announcement, adding that they would introduce a launchpool through which Binance users can stake Binance Coin (BNB) or Binance USD (BUSD) to farm KLAY tokens.
“With the official introduction of KLAY on Binance, Klaytn expects to accelerate its global expansion, inviting global developers and service providers to participate in its ecosystem.”
The news of Binance-Klaytn partnership came just as KLAY was bouncing off its six-month low level of $0.72. In turn, the rebound followed a 83.45% price crash from KLAY’s mid-April peak of $4.35. As a result, the latest 57% spike from $0.72 to $1.243 did little in taking KLAY out of its prevailing bearish bias.
Atop that, the token painted a death cross on its daily timeframe chart.
In detail, a death cross occurs when an asset’s short-term moving average closes below its long-term moving average. Traders interpret the said crossover as a signal to limit their upside bias in a market and/or increase their bearish bets.
The 50-200 moving average crossover particularly has been proven to be a reliable forecaster of some of the most severe bear markets of the past century: in 1929, 1938, 1974, and 2008, according to Investopedia.
If past is any signal, the Klaytn token could face further downside corrections once the Binance listing hype settles.
The Bitcoin Factor
Meanwhile, KLAY’s medium-term bias also depends on how Bitcoin (BTC) performs in the coming daily sessions.
The chart below shows how KLAY has erratically tailed Bitcoin price trends in the recent history. For example, both the assets topped out in mid-April with a slight lag. Meanwhile, they recently bottomed out with just a 24-hour difference, hinting that, in the future, they would keep trending hand-in-hand.
But that is not good news for KLAY.
Oleg Belousov, founder and CEO of cryptocurrency exchange N.Exchange, told Cointelegraph that he expected Bitcoin to fall towards $20,000, citing China’s renewed crackdown on the cryptocurrency sector.
“There are concerns that more countries will follow in China’s footsteps and join the ban, which will cause a further drop in rates,” he said.
Belousov added that Bitcoin still has hopes in countries that are democratic and constitutional, stating that they can’t legally ban cryoto.
Meanwhile, technical chartists said that the recent upside reversal in the Bitcoin market is a signal that the cryptocurrency would move higher.
$BTC looks like it’s heading to $36k
— Josh Rager (@Rager) June 24, 2021
If the correlation stands, KLAY could head higher, as well.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.
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