MKR Technical Analysis: Under $1000, Maker Price Hinges At 100 DEMA
The MKR price action displays a phenomenal bullish recovery of 68% between 21st September and 28th October to reach the $1000 mark. However, the increased supply inflow at the psychological mark led to a bearish reversal within the evening star pattern. Currently, the price action struggles to find support at the 100-Day EMA to avoid further correction.
Key Points:
Source-Tradingview
MKR Technical Analysis
The MKR price action gives a bullish breakout of a long-coming resistance trendline as it reverses from the bottom support level of $590. The breakout rally accounts for a 60% price within the month to reach the $1000 mark.
The increased supply inflow at the psychological market led to a bearish reversal with an evening star pattern with long wick formation. Additionally, the spike in the intraday trading volume supports the bearish reversal increasing the possibility of a down current to the next support level.
Currently, the price action takes support at the 100-day EMA close to the psychological mark of $900. Thus, a daily candle closing below the EMA floor will intensify the selling pressure and plunge the prices 10% down close to the $800 mark.
Conversely, if the market sentiment improves, a bullish reversal from the 100 DEMA will offset the bearish thesis. This development could push prices 25% higher to hit the 200 DEMA at $1160.
Technical Indicator
The RSI indicator shows a fall from the oversold zone to cross under the 14-day SMA, reflecting a short breather. Moreover, the declining gap between the MACD and signal lines teases a bearish crossover.
Therefore, the MKR technical analysis suggests that traders should wait for a selling opportunity as the technical indicators reflect a surge in selling pressure.
Resistance levels- $1000 and $1160
Support levels- $900, $800
