MKR Sellers Plan A Revisit $1000; Buy Again?

Due to a sudden price drop of its competitor Terra(LUNA), the MKR/USDT pair has witnessed a significant inflow as investors are safer with DAI stablecoin. As a result, the altcoin nearly jumped 80% on its intraday level and reached a high of around $2300. However, the sellers didn’t allow such a quick recovery resulting in a long higher price rejection candle.

Key points

• The MKR chart displays a long-tail rejection attached to today’s daily candle
• The MKR price plunged below the crucial EMAs
• The 24-hour trading volume in the Maker coin is $593.5 Million, indicating a 200% gain

Source-Tradingview

Since September 2021 fall, the Maker(MKR) technical chart has presented a steady downtrend responding to a descending trendline. The altcoin offering multiple reversals from this resistance indicates traders are aggressively selling on bullish pullbacks.

Furthermore, the last correction phase has recently breached crucial monthly support of $1680 on April 26th. As a result, the escalated selling momentum slumped the MKR price by 38% and hit the $1000 psychological support level.

Yesterday, the MKR price rebounded from the $1000 mark with a bullish engulfing candle, but it witnessed an even greater buying force today. During the early hours, the coin price reflected 86% growth on an intraday level and retested the overhead trendline.

However, the MKR price immediately reverted and dropped below $1680. The long-wick rejection attached to daily candles indicates the sellers have not thrown the towel yet.

Thus, a candle closing below $1680 would bolster a revisit to the $100 mark.

Technical indicator

In today’s high volatility, the MKR buyers reclaimed and lost the crucial EMAs(20, 50, 100, and 200). However, a bearish sequence among these EMAs reflects an overall bear market.

A parabolic rally in the daily-ADX slope with an insignificant dip due to today’s price jump indicates strong bullish momentum

• Resistance level- $1680 and $1950
• Support levels- $1000 and $800

From the past 5 years I working in Journalism. I follow the Blockchain & Cryptocurrency from last 3 years. I have written on a variety of different topics including fashion, beauty, entertainment, and finance. raech out to me at brian (at) coingape.com

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.