KILT Protocol (KILT) is in the process of creating a long-term bullish reversal pattern. Confirmation could help the token rise by over 230% from its current level.
Interest in the decentralized identity (DID) field is increasing, as Binance’s recent Launchpad projects Galxe (GAL) and Space ID (ID) are both related to this area.
KILT is a parachain in the Polkadot ecosystem that provides secure, scalable, and decentralized digital identity solutions. On March 28, the KILT Protocol partnered with Bitcoin Suisse to make it easier for institutional investors to access the project.
Inverse Head and Shoulders Pattern
The KILT Protocol (KILT) price has been on a long-term downtrend since reaching an all-time high of $15 in November 2021. The decline led to a low of $0.21 at the end of November 2022.
The price has since risen and tested the $0.75 resistance level. Although rejected, KILT appears to have created a higher low in the week of March 6-13 and is currently forming the right shoulder of an inverse head and shoulders pattern. This is a bullish pattern that typically appears at the end of a downtrend.
This pattern will be completed when the price breaks above the $0.75 resistance level. The weekly RSI indicator supports this possibility by creating a significant bullish divergence and the divergence line remains intact.
If so, the price could rise to the pattern target of $1.3, marking a 233.1% increase from its current level.
20-day MA
The KILT price has respected the 20-day MA line for over four months. KILT typically begins a new trend when the price breaks above or breaks below this MA.
After bouncing from the horizontal support level of $0.33, the KILT price has created a higher bottom and is currently retesting the 20-day MA. As mentioned above, a successful breakout could help KILT start a new uptrend. The nearest target is $0.75.
The RSI indicator supports the possibility of a breakout as it has broken above the downtrend line. Such breakouts typically occur before a price breakout.
This outlook will be invalidated if the price breaks below the support level of $0.33. If so, it could fall to the annual low of $0.21.
Conclusion
The most likely prospect shows that KILT will break above the 20-day MA and rise to at least $0.75.
Breaking the $0.75 level would help KILT complete the inverse head and shoulders pattern with a target of $1.3.
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This article was republished from azcoinnews.com
