MAKER (MKR) cryptocurrency; silver maker coin on the background of the chart
- Maker’s cryptocurrency, MKR, soared to an impressive $1,650, marking a new high for the year, although it was unable to maintain its position above the $1,600 resistance level.
- While longer-term signals remain optimistic for MKR, short-term indicators and a developing bearish pattern suggest potential vulnerabilities in its current momentum.
Today, Maker’s native token, MKR, achieved a remarkable milestone, hitting a yearly peak of $1,650 – the highest it has been since May of the previous year. However, the token’s inability to stay above the $1,600 resistance level left the market pondering about the next possible moves.
A Closer Look at MKR’s Performance
Since June, the MKR price has been on an upward trend, closely following a steep ascending support trendline. This trend was further confirmed in August when the price, after a slight dip, resumed its climb, bolstering the $1,000 level as a significant support zone. On October 24, the token’s price spiked, reaching a new yearly high of $1,651, yet it closed the day below the crucial $1,600 resistance area, resulting in a long upper wick – a potential sign of rejection from higher price levels.
The surge in MKR’s price comes amidst notable activity from a prominent whale, who transferred a whopping $14.6 million worth of MKR to Binance since the start of October. While large deposits to centralized exchanges typically hint at a potential sell-off, MKR has defied expectations, showing substantial growth since the beginning of the month.
The weekly Relative Strength Index (RSI), a momentum oscillator that measures the speed and change of price movements, appears to be in bullish territory. The RSI stands above 50 and is on an upward trend, indicating that the buyers are in control. However, the absence of a bearish divergence on this timeframe suggests that there may still be room for upward movement.
What Lies Ahead for MKR?
Despite the promising signs, the daily timeframe introduces a note of caution. MKR is currently trading inside an ascending wedge, traditionally seen as a bearish pattern. The price tested the wedge’s resistance line during its peak today, adding weight to the possibility of a short-term pullback. Additionally, a growing bearish divergence on the daily RSI implies a weakening momentum, which could precede a price drop.
If this scenario plays out, MKR might witness a 15% correction down to the ascending support line.
Nevertheless, should MKR break free from the $1,600 barrier and the confines of the wedge, it could potentially ignite a 45% rally, propelling it towards the next significant resistance at $2,300.
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