Kyber Token Analysis
KNC Analysis December 2020
Token Analyst: Marian
Release date: December 25th 2020
Global Summary:
👉 NEUTRAL
As of the moment of writing this article, KNC (Kyber Network Crystal) is green on the yearly graph with a whooping increase of +339.19% in comparison to last year, with a current price of 0.875 USD. The price surged during this summer and settled a bit lower in the autumn, which coincided with a decreasing number of users as well as value locked in KNC for the Kyber Project. The TA for the last couple of weeks is not very exciting, with limited price action and movements, which could be interpreted as reactions to the general market sentiment (in contrast to the spike during the last summer). Price is expected to keep its current level for the next month or so.
Kyber has become a little less popular but it still continues to shine brighter as different aspects of the project continue to be developed and expanded. Also, its use cases are a firm reminder of the potential KNC and Kyber hold.
Looking at the Google trends and further to the fundamentals below, the general feeling of this project and its token is 👉 NEUTRAL, due to a small recent uptick to prevent it from going bearish.
Fundamental Analysis:
👍 BULLISH
Kyber Network is a purely on-chain Ethereum-based protocol that provides liquidity and is designed to carry out instant conversion of digital assets. With Kyber Network, any token swap can be integrated into any Ethereum-based application, to facilitate providing services to end-users.
Here an overview for those unfamiliar with what exactly the Kyber Network is:
Kyber acts as an intermediary between Dapps,
decentralized exchanges, and swap platforms allowing them to swap assets without affecting each other. In order to carry out these swaps, reserves created by reserve managers for the said token are credited/ or debited.
KNC can be staked for governance rights and rewards, also fees and rebates for the reserves are carried out in KNC. With tokens being burnt constantly.
Kyber also keeps developing itself: KyberDao, KyberPro, new partnerships, and token listings. (Kyber November Report: https://blog.kyber.network/kyber-ecosystem-report-november-2020-1a438e875261
Below we see a graph depicting the total value locked in the project in M$ and the number of users. The recent spikes coincide with the bitcoin’s price increase but the amount of users is declining which sets the fundamental analysis trend:
A look at Google Trends for the Term: KNC
Apart from this, the idea behind Kyber Network is a brilliant and seamless way to interconnect different ecosystems and make life easier for all, but if now is the right time for it, still remains to be seen.
With strong fundamentals but wavering interest and reduced value locked, the current Fundamentals Trend is 👍 BULLISH, as the project can perform much much better but other projects are in the spotlight right now, so it is only a matter of time until KNC has its turn.
Technical Analysis:
Long Term
👉 NEUTRAL
On the 1D Graph, we see KNC having a downwards trend for the past 4 months, with a recent flat out. Also, the RSI remains fairly neutral in the upper mid-range of 50. Recently around the 20. December a MACD crossover was observed, which is signal a reversal of trend, albeit very weak and small (this is also reflected in the recent spike of locked value in Kyber)
What is concerning, is that the price of KNC seems to not react as much as other tokens to the increase in the crypto market (11.December to 20. December, we have an increase of 17% in price, compared to 38% for BTC against the USD).
The highs and lows form a downwards triangle that goes into January/February, so for most of it, no extreme price action is expected. One should decide carefully which is the best entry point, there might not be that many lower lows. I expect the price to remain more or less the same until the end of January. Afterwards a breakout should be possible, due to some cooling off period from BTC.
Medium Term
👉 NEUTRAL
On the 4H the steady drop from November until December can be observed, with a bounce from the important level at 0.86$, MACD crossover, RSI bump — with an afterward slow and steady increase and then the sudden drop on 21 Dec once again coinciding with market sentiment. With RSI around 40 (on the 21. of Dec) the price is looking to stabilize rather than continue to decrease, but it is a little bit too soon to define a trend, the week up to the new year will be very important.
Conclusion:
All in all, my opinion regarding KNC is mostly neutral. KNC has barely managed to stay neutral instead of bearish and this is most likely thanks to the crypto market in general. On the fundamentals side, this project just keeps getting better and better: volumes on the Kyber exchange have surged, new tokens were listed and the network keeps developing itself (examples such as the KyberDAO, Kyber Pro, and new partnerships — see November blogpost above). I am most definitely keeping KNC in my sight for a future buy-in opportunity, depending on TA, milestone progress, and announcements.
See you soon for a new analysis!
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About the author:
Written by Marian, a crypto enthusiast and Swissborg community member its inception. I am always on the lookout for interesting and promising projects which not only have great potential to increase in value but also add value to my life and financial welfare.
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