Maker Price Prediction: Will MKR Escape Its Consolidation?

The MKR/BTC pair was trading at 0.02408 BTC with a rise of 1.81% intraday. MKR reached its 52-week high but later turned bearish after facing significant resistance from the 50-Day DMA. As a result of this bearish market, the token’s price dropped to its primary support level of $656.92.

The buyers then entered the market, and competed with the sellers to maintain the token’s price above the primary resistance level of $823.69. However, towards the end of 2022, the buyers surrendered to the pressure. This caused the token’s price to fall below the secondary resistance level and made a new 52-week low.

At the beginning of 2023, the MKR token started moving upward. But once it hit its primary resistance, the price began consolidating within the range of its primary support and resistance levels. After the price reached the secondary resistance of $970.83, the sellers were able to push the MKR price below its primary resistance level.

One possible cause for the prior downtrend could be the formation of the evening star candlestick pattern over the daily time frame chart. However, after falling to the primary support, the token price again tried to show upward movement over the chart with the support of the active buyers present in the market .

The trading volume of the token decreased by 16.82% in the last 24 hours, indicating an increase in short positions in the market.

Maker Price Technical Analysis

The Relative Strength Index (RSI) is decreasing in the overbought zone and might display a negative crossover, suggesting that the sellers are coming in the majority and pulling the MKR downwards. The current value of RSI is 52.75, which is above the average RSI value of $48.18.

However, the MACD and the signal line are increasing which contradicts the RSI over the daily time frame chart.

Conclusion

Maker price movement suggests it is trying to break its consolidation with the help of active buyers present in the market. The sudden decrease in trading volume shows negative market sentiment toward the MKR token.

Furthermore, RSI is decreasing and might show a negative crossover over the daily chart, indicating weakness in the bullish trend. However, MACD is increasing over the daily chart contradicting RSI.

Technical Levels

Resistance Levels: $823.69 and $970.83

Support Levels:$656.92 and $588.25

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational purposes only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.