The KuCoin Token price formed a hammer candlestick pattern after the exchange pleaded guilty to operating an unlicensed money-transmitting business in the United States. The KCS token dropped to a low of $12.16, its lowest point since January 24 and 13% below the highest point this year.
Kucoin Fined $300 Million
KuCoin, a large crypto exchange that handled over $2.3 billion, agreed to pay US regulators $300 million. Two of its co-founders agreed to defer prosecution with the Justice Department.
This is a major win for US authorities. They recently received $45 million from Robinhood, which settled with the SEC for violating securities laws. Before that, authorities ordered Binance to pay a $4.3 billion fine, and a few months later, it was ordered to pay $2.7 billion to the Commodity Futures Trading Commission (CFTC).
US authorities have also sued other companies in the crypto industry, including Coinbase, Kraken, and Uniswap. However, now that the SEC’s leadership has changed, it is unclear whether these lawsuits will continue.
The most common crime these companies are accused of is offering unregistered securities. Gary Gensler’s SEC believed that most coins, including popular names like Polygon, Solana, and Cardan, were unregistered securities that should be regulated.
KuCoin Token Formed a Hammer Pattern
The KCS price has done well in the past few months as it jumped by over 108% from its lowest in July last year. It has remained above the 50-day and 200-day moving averages since that period.
The token has now formed a cup and handle pattern, a popular bullish continuation sign with an upper side at $13.80. The recent retreat was part of the handle section. Most importantly, it has formed a hammer candle with a long lower shadow and a small body.
Therefore, combining the hammer candle and the C&H patterns means the coin will probably have a strong bullish breakout. If this happens, the next point to watch will be the psychological level at $15, followed by $20.
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