The KuCoin Token price (KCS) price has been under pressure in the past few days. The coin has dropped to 22.52 USDT, which is about 20% below its all-time high. The coin is still abou 145% above its lowest level in September while its market cap is at more than $1.6 billion.
KuCoin Labs invests in metaverse
The Kucoin Token, also known as the KCS, is the native token for the Kucoin ecosystem, Kucoin is aone of the biggest cryptocurrency exchanges in the world. In any given day, cryptocurrencies worth more than a billion dollars move through its platform.
Now, KuCoin Labs has become the latest company to invest in metaverse. This is an industry that is building products that allow people to interact with each other. It is also an industry that is being tacked by companies like Microsoft, Google, Axie Infinity, and The Sandbox.
In a statement, KuCoin Labs announced that it was starting a $100 million fund to empower early-stage companies that are building these products. Other similar beneficiaries of this fund will be companies in the GameFi, Non-Fungible Tokens (NFT), and other decentralized infrastructure. In a statement, Johnny Lyu, the CEO of KuCoin said:
“Metaverse is poised to change the way we work, connect, shop, entertain and have social interactions. ‘KuCoin Metaverse Fund’ will be launched to accelerate the evolution of the Internet industry. We hope to mature the emerging blockchain industry by further strengthening the application of blockchain technology to the metaverse projects.”
This fund comes just a few months after the company launched a $50 million fund to find the next crypto gem and empower the development of other projects.
On the four-hour chart, we see that the KCS price has been in a strong bullish trend in the past few weeks. During this climb, the coin has formed an ascending channel pattern that is shown in pink. Now, the price is dropping as bears target the lower side of the channel. Notably, it has also fallen below the 25-day and 50-day moving averages.
Therefore, the KuCoin Token price will likely continue falling in the near term. This decline will be validated if the price manages to move below the lower side of the channel. If it happens, the next level to watch will be the 50% retracement level at $18.46. The alternate scenario is where the coin moves to the upper side of the channel.