Maker (MKR) Price Increases to New Yearly High

The Maker (MKR) price yearly high of $1,650 was reached today. It was the highest price since May 2022.

The price failed to sustain the increase and fell below the $1,600 resistance area. What will happen next?

MKR Briefly Reaches $1,650

The MKR price has increased alongside a steep ascending support trendline since June. More recently, the line was validated in August before the price resumed its ascent.

The bounce (green icon) also validated the $1,000 horizontal area as support. 

On October 24, MKR reached a new yearly high of $1,651. This was the highest price since May 2022. Despite the increase, MKR failed to close above the $1,600 resistance area, creating a long upper wick (red icon).

An interesting fact about the increase is that a whale deposited $14.6 million worth of MKR to Binance since the beginning of October. Usually, such large deposits to centralized exchanges are indicative of selling.

However, this was not the case for MKR, which has increased significantly since October.

The weekly RSI is bullish. The RSI is a momentum indicator traders use to evaluate whether a market is overbought or oversold and whether to accumulate or sell an asset.

Readings above 50 and an upward trend suggest that bulls still have an advantage, while readings below 50 indicate the opposite.

The indicator is increasing and is above 50, both signs of a bullish trend. While the current reading is overbought, there is no bearish divergence to warn of an impending drop.

Well-known trader Nebraskangooner also believes the current price movement is bullish and will lead to further upward continuation.

MKR Price Prediction: Is $2000 the Next Step?

Despite the MKR price yearly high, the daily timeframe suggests a retracement could occur before the increase continues.

The first reason is that the MKR price trades inside an ascending wedge, which is considered a bearish pattern. The price validated the wedge’s resistance line during its yearly high today (red icon). 

The second is the growing bearish divergence (green line) in the daily RSI. A bearish divergence occurs when a momentum decrease accompanies a price increase. It often precedes price drops. 

If a decrease occurs due to the divergence, the altcoin could fall by 15% to the ascending support line.

Despite this bearish MKR price prediction, a breakout from the $1,600 area and the wedge will likely lead to a 45% increase to the next resistance at $2,300.

For BeInCrypto‘s latest crypto market analysis, click here.