Kyber Network (KNC) is one of the many coins that has benefited from the DeFi boom in crypto. Now that a lot of speculation has reentered the space, it may be a prudent practice to add some speculation into your crypto portfolio.
I know many people - myself included - enjoy the HODL mentality and like to buy an asset that we believe has massive intrinsic value thanks to the fundamentals, underlying technology and so on and so forth.
But oftentimes, someone with that mentality can actually miss out on some speculative gains. Speculation is an important part of investing, but only when it is utilized correctly.
KNC is not a coin that I personally follow closely in terms of fundamentals. That said, it is a coin that has an immense level of attention and DeFi "juice" - so to speak.
So if our goal is to speculate and benefit from the boom in DeFi and the high volume of transactions, then trading in and out of something like KNC can make a lot of sense. Simply understand the risk/reward before you enter the trade.
The first blue line in my chart represents the DeFi boom. This is the beginning of a cycle in DeFi and I believe we'll see a continuation.
The second blue line represents today's drop and where I believe price to be headed.
The third line is yellow. That represents where I believe that KNC will be headed after this consolidation is over.
Box 1 is the first accumulation zone - this is the first possible entry point and we are in it as I'm sitting here writing this post.
Box 2 is our second accumulation zone - this is the second possible entry point. I think we'll see some candles wicking down to this level within the next couple of days.. although those discounted prices may not stick for long.
- Target Entry #1: $1.52
- Target Entry #2: $1.31
- Target Exit: $1.75-$1.95