Will MKR Price Form A Support At $1200?

Maker price was in a strong uptrend, surging approximately 57% from the low of $864 and forming a yearly high of $1370. However, the move was halted as the price could not close above $1340.

The price gained bearish momentum after facing rejection from $1370 and breaking the uptrend. For the past four days, the candles have been bearish.

MKR price has reached a major psychological level of $1200, and bulls are trying to form a support. The price enjoyed a bullish move over the last few weeks. The current market structure shows that momentum has declined.

Maker protocol has witnessed an increase in adoption in recent weeks. There have been significant deposits, swaps and aaccumulationscarried out by the top guys in the market.

If bears can push the price below $1200, it might head down toward the next support level of $11600, causing a downfall of roughly 3.21%. On the other hand, if bulls can form a support at $1200, it might retest $1340.

Maker Network Anatomy

The total value locked in Maker has dropped significantly since March. TVL has dropped from $7.635 Billion (March) to $5.464 Billion as of today. Maker recorded the highest revenue since the start of 2023 in July, amounting to $9.64 Million.

According to Santiment, a blockchain analytics firm, there was an increase in supply on the exchange, which was a bearish signal for the traders. The net deposits also hiked, which was also an indication of a correction in the price.

The market capitalisation of Maker is down 1.60% to $1,174,160,798. The 24-hour trading volume is also down by 0.25%.

Will MKR’s Price Sustain Itself Above the $1200 Mark?

The cryptocurrency price trades above the 20, 50, 100, and 200-day exponential moving averages. Indicating bullish momentum. If price can form a support near the 20-day EMA, it can potentially retest $1340.

Chaikin’s money flow score has dropped below the 0 mark and currently trades at -0.06 suggesting weakness in the market. CMF’s downward slope indicates a significant outflow of capital.

The relative strength index has also dropped below the overbought region and trades at 57.52, suggesting that price can regain bullish momentum if bulls can form a support. The long/short ratio of Maker is 1.11, with 52.66% longs and 47.34% shorts, indicating a higher dominance of bulls in the last 24 hours.

Conclusion

The market structure and price action of Maker have turned bearish after the price faced rejection near $1340. If the price can form a support at $1200, it might retest the $1340 level. Technical parameters are still favouring this side, but traders should wait for the price to form a support.

Technical levels

Major support: $1160 and $1060

Major resistance: $1340 and $1430

Disclaimer

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