MKR token price analysis: Token price raids the $950 level

• The MKR token price is trading at the long-term supply zone after bouncing off strongly from the demand zone on a daily time scale.
• The token price is forming a rounding bottom pattern on a daily time frame.
• The pair of MKR/BTC is trading at the price level of 0.03993 with a decrease of -1.26% in the past 24 hours.

The MKR token price has been on an uptrend for the last couple of weeks. The token price managed to stay at the long-term supply zone, and as a result, it started consolidating showing signs of a further up move. The token price is forming a higher high and higher low formation on a 4-hour time frame.

MKR token price bounces off the demand zone

MKR token price is currently trading above the important moving averages. This came after the token price managed to stay above the demand zone which resulted in the breaking of the 50 and 100 MAs. Moving upwards this MAs can act as a strong demand zone during the pullback in the bullish rally. If the token price manages to do so, it can be seen breaking the long-term supply zone with a strong bullish candlestick pattern which will trigger a massive move.

At present, the MKR token price is trading at the upper band of the Bollinger band indicator. Following the bullish rally in the overall cryptocurrency market, the current trend was seen in the MKR token price. Volumes have increased as the token price showed a bullish movement.

The MKR token price is forming a rounding bottom pattern on a daily time frame 

The MKR token price is trading at the supply zone after rising from the demand zone. The recent rise in the price of the MKR token price triggered a positive crossover on the MACD indicator. The blue line crossed the orange line on the upside. If the token price can sustain at the supply zone and storms off it breaking the rounding bottom pattern, the MACD lines can be seen widening supporting the trend. Investors should wait and watch for a proper signal of the trend as a breakdown of the current long-term demand zone will trigger. A negative crossover.

RSI curve is trading at the level of 57.53. The RSI curve has crossed the halfway mark of 50. Once the token crosses the supply zone of 2.0 the token price can be seen moving up with strong bullish momentum. The RSI curve has crossed the 14 EMA yellow line indicating a short-term bullishness. Once the RSI crosses the mark of 60 the MKR token price can be seen breaking the supply zone, supporting the trend.

ADX has been continuously rising as the token price broke an important supply zone of $950. As of now, the token price is trading above this important demand zone. The breakout zone is now acting as a strong demand zone. At present, the token price is trading at $903. The ADX curve has dipped out of the 35 mark.

Conclusion: As the price action suggests, there is a possibility of the token price breaking the long-term supply zone. As per the technical parameters, the trend seems to be bullish for the upcoming trading days. It remains to see if the token price will break the supply don’t, where bulls will overpower bears, or the opposite will happen.

Support: $850 and $810

Resistance: $970 and $925

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 financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.

Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.

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