Will MKR Break Out Of Consolidation Zone?

Maker price has been in a bullish trend after forming support near $615, and was struggling to rise above the $1000 level since the start of July. The cryptocurrency’s price did rise above $1000, but was not able to stabilize, and closed near the $988 level. The bullish rally led to the formation of an annual high at $1080.

MKR price has been stuck in a consolidation zone ranging between $865 and $985 since the start of July, and it has been attempting to rise above $1000. The previous candle closed as a bearish candle and the current candle was successful in forming support at $922.

The current candle is bullish and has broken the high of the previous candle and is striving to break the resistance level of $988. If the current candle can break and close above $1000, there is a possibility for the Maker price to head toward the next resistance level of $1100, which would result in a gain of roughly 10%.

The bullish momentum is strong in the current candle but traders should wait for it to close above $1000. On the other hand, if the price closes below $988, it might seek a short-term pullback for the formation of support and if it can potentially break the recent support level of $922, the price might melt down toward $865.

MakerDAO Gets Replaced

The market capitalization saw an increase of 8.51% to $965,977,675. The 24-hour trading volume has also increased by 25.24%. MakerDAO has been replaced by AAVE as the second largest decentralized finance protocol in terms of Total Value Locked. The current TVL of MakerDao is $5.47 billion, with a drop of 1.29% in the last 7 days.

Will MKR Price Stabilize Above $1000 If a Breakout Occurs?

The cryptocurrency’s price trades above the 20,50,100 and 200-day EMAs, implying that price is in a bullish momentum. The 20-day EMA has been acting as a support for the price. Chaikin money flow score is -0.05, suggesting slight weakness, but the overall price action is bullish.

The relative strength index (RSI) is hovering above the 60 mark and currently trades at 63.64, indicating high participation of bears in the market. The bollinger bands have contracted, hinting a low volatility in the market. Currently, the price is headed toward the upper band of bollinger. The long/short ratio is 1.05 with 51.37% longs and 48.63% shorts, suggesting a higher pressure from the buying side in the last 24 hours.

Conclusion

The market structure and price action of Maker is bullish and is striving to break the $1000 level. If the price is successful in closing above $1000, it might head toward $1100. Technical parameters indicate that there is strong bullish momentum in the price. Traders should wait for the candle to close before looking for bids.

Technical levels

Major support: $865 and $800

Major resistance: $1100 and $1150

Disclaimer

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