KLON at Tipping Point

I’ve been farming KLON in the WBTC-KLON farm as well as the WBTC-KBTC farm.

I recently took a large bet on KLON at $250 and was rewarded with an immediate gain to $350 so that bodes well for KLON holding its support (above the pink line)… but it might not.

Every time the market has handed me a quick win it’s been right to hold.

At the same time the chart on KLON had been teetering in the brink of a (final?) breakdown to a further low.

I do believe KLON is fundamentally a workable system and a valuable (and value) token. So I feel like holding even if it does break down, but I will lighten my position. It is always right to lighten your position when the asset doesn’t do what you want / expect / looks weak.

Although KLON is a small circulating supply and thus market cap — under 50M — it has seen a rapid price increase. It could correct further. When prices hit up against moving averages and you see moving averages win at holding the price at bay it is a warning sign.

You can see the price has been pushed down as it hits the moving average above (blue line).

Different time frames have different moving average lines so looking at many perspectives can yield a more accurate assessment.

In this picture you can see that there has been a moving average cross (bearish). However, I’ve seen many times when the moving averages lag just enough to imply the exact opposite. That’s why I use trend lines. The MA is my warning. The trend line is my signal to make a lighter position.

I think it’s time to watch this chart.

I am bullish, but if you’re overweight, you want to be willing to take a small loss and preserve your ability to buy lower. Perhaps sell 1/2 your position or even 3/4 — in my time trading the more I lighten the better my performance — because it makes you want to watch it and buy back and you have more ammo to do that at what is likely (otherwise you wouldn’t lighten) a lower price. If it’s a higher price ok so you only lose a bit of would be profits.

Stay tuned…