- MKR shows bearish behavior after breaking out of the consolidation.
- The pair of MRK/USD at the price level of $516 with a decrease of -0.61% in the past 24 hours.
- The MKR token price is trading below the demand zone on a daily time frame.
The overall bearish trend in the cryptocurrency currency market appears to have influenced the token’s price. Token prices were severely rejected at the supply zone due to recent bearishness, causing them to fall back into the demand zone. MKR token has been consolidating in a range for a few days and recently broke out of the range in a downward direction. Bears appear to be ready to drive the price of the token down again.
The bearish trend continues, and investors are worried
MKR was consolidating in a range on the daily chart after breaking through the $589 support level. In the past 24 hours the token broke out of the consolidation in the downward direction. Token is now trading at $516.93, showing a -0.61% loss. The price is trading below its main Moving Averages (50 and 200 EMA). (Red line is 50 EMA and the blue line is 200 EMA). The token formed a double top pattern in the supply zone and was rejected at the confluence of the 200 EMA and the supply zone.
Relative Strength Index: The asset’s RSI curve is presently trading at 32.52, indicating that it is in the oversold zone. The RSI curve has also crossed below the 14 SMA, indicating some bearishness before further upward movement. If the price is unable to hold onto the next support level, the RSI value may fall below 30, indicating a strong oversold condition.
Analyst view & Expectations
Bears appear to have gained control, driving the token’s price down. Investors are advised not to buy and instead to wait for any upward momentum. The next key support level is $501; a price drop below this level will cause a sell-off, with the next support level at $434. If the price falls below $501, intraday traders have a good opportunity to go short.
According to our current MKR price prediction, the value of MKR will fall by -0.95% and hit $ 513.15 in the coming days. Our technical indicators indicate that the current sentiment is bearish, with the Fear & Greed Index reading 28. (Fear). MKR had 13/30 (43%) green days with 7.23% price volatility in the previous 30 days. According to our MKR forecast, now is not the time to buy Maker.
Technical Levels
Major support: $501
Major resistance: $560
Conclusion
On a daily chart, the MKR token price has slipped below the demand zone. The MKR token price is forming a bearish chart pattern, according to the price action. It remains to be seen if the token price can rebound from the long-term support level or break through and fall. Investors should wait for a clear indication before investing.
Disclaimer: The views and opinions stated by the author, or any people named in this article, are for informational ideas only, and they do not establish the financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Source: https://www.thecoinrepublic.com/2023/01/02/maker-technical-analysis-mkr-bears-have-taken-hold-of-the-trend/