MKR closed the trading month with an index price of $679.41, MKR recorded a price decline of 42% in August. On a daily chart, this free price drop within the 30-day period caused the token to create a falling wedge. It broke out on September 22 and has only set green candles ever since.
MKR makes moves
It is trite that an upward breakout of a falling wedge often triggers a bull run for a crypto asset. In the case of MKR, a look at the performance on a daily chart gives credibility to this position.
At the time of writing, buying pressure for MKR was mounting. Recovering from a month’s decline in price, the Relative Strength Index has been in an uptrend since the bullish breakout. While still below the 50 neutral region, the RSI was spotted at 44 at the time of writing.
While MKR’s Chaikin Money Flow (CMF) was in the mid-line (0.1) with continued growth in buying pressure for the asset, it looked poised for a move north.
Furthermore, a look at the moving average convergence divergence (MACD) revealed an upward crossing of the MACD line with the trendline as a bullish breakout followed the falling wedge. This somewhat marked the beginning of a new bull cycle for MKR.
Warning stories told in the chain
While movements on the price chart may indicate that the bulls are in control of the MKR market, on-chain statistics are sending out warning signs.
According to data from Santiment, MKR’s supply on exchanges is up 7% in the past month. A spike in asset supply on exchanges indicates growth in the selling pressure of such assets.
It goes without saying that consistent growth in the selling pressure of an asset drives the price of such an asset in one direction – downwards.
With MKR’s price continuing to fall over the past month, weighted sentiment fell sharply from 7.61 on Aug. 26 to -0.136 in the 24 hours that followed.
It has been negative ever since. At the time of going to press, this statistic stood at -0.144. In addition, the 30-day MVRV rested on the midline in a downtrend of 0.088%, suggesting that not many MKR holders have made gains in the past month.
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