Maker (MKR) has fallen steadily since the ATH last May. On the daily chart, the alt witnessed an 11-month trendline resistance that has served as a strong selling point so far.
From here on, MKR would likely continue its pattern oscillation and eye to retest its trendline resistance before falling towards the $2,200 mark. The bulls had to overturn the long-term liquidity range (Point of Control/POC) to reverse the trend in their favor. At the time of writing, MKR was trading at $2,155.5, down 8.7% in the last 24 hours.
MKR Daily Chart
After floating above USD 6,300, bears have started a gradual but aggressive decline over the past 11 months. MKR fell 76.1% from its lifetime milestone when it reached its year-long low on Feb. 24.
Fibonacci levels of 23.6%, 38.2% and trendline resistance have avoided all bullish recovery attempts over the past year. For example, the bears have refrained from giving buyers a free hand and have kept the price below the POC since early this year.
Given the strength of the current up-channel (yellow) rally, a possible rebound in the 20 EMA (red) MKR should set the stage for a retest of the $2,400. Furthermore, a reversal in the trendline resistance could cause a pattern breakout that could lead to a further fallout. For the bulls to claim any advantage, they must find a lock above the POC and knock over the Fibonacci level of 23.6%.
The RSI spiked to the overbought mark at the same time as the price hit its POC. So the price saw a reversal and was now set to test the 20 EMA. Any uptick in the RSI (possibly off the midline) would trigger a near-term bullish divergence and increase the likelihood of a USD 2,400 retest.
CMF fell steeply below the zero line revealing bearish sentiment for the alt. A likely rebound in the coming days could propel a price recovery towards long-term trendline resistance.
Any close below the current pattern would position the alt for further demise. Given the oscillators’ readings, a possible uptick could trigger a retest of the USD 2,400 level before a likely decline. The POC would be an important value area to determine a trend change.
Interestingly, MKR shares an 87% 30-day correlation with Bitcoin. So, the traders/investors should keep a close eye on it to increase the chances of a profitable move.
This post Bullish or bearish? Maker could see these levels in the next week
was published first on https://ambcrypto.com/bullish-or-bearish-maker-could-see-these-levels-in-the-coming-week/