Maker (MKR) Hits New Yearly High, Breaks Resistance
If you’ve been following the crypto market this year, you may have noticed that Maker (MKR) has been performing exceptionally well. In fact, it recently reached a new yearly high of $1,450 on September 26.
This upward movement also led to a breakout above the $1,250 horizontal resistance area, which had been in place for over a year.
Maker Closes Above $1,250 Resistance
The price of MKR has been steadily increasing since June. However, in July, it faced rejection at the $1,250 resistance area, resulting in a long upper wick on the price chart.
A long upper wick is often seen as a sign of selling pressure and suggests that buyers were unable to sustain the price above the resistance area. As a result, sellers took control and pushed the price down.
But this week, MKR finally broke out above the $1,250 area and reached a new yearly high of $1,450. This is the highest price we’ve seen since May 2022.
Breaking above the $1,250 resistance could indicate a bullish trend reversal since it had been a significant barrier for over a year. If the price retraces back to this area, it is likely to provide support. The next major resistance level is at $1,650.
Bullish Outlook for MKR Price
The weekly Relative Strength Index (RSI) supports a bullish outlook for MKR. Traders often use the RSI as a momentum indicator to determine whether a market is overbought or oversold.
When the RSI reading is above 50 and trending upwards, it suggests that bulls have the upper hand. Currently, the RSI for MKR is above 50 and increasing, indicating a bullish trend. Although it is approaching overbought territory, there is no bearish divergence yet.
Bearish divergence occurs when there is a price increase accompanied by a decrease in momentum, often leading to a reversal in the trend.
MKR Price Prediction: Another Yearly High Before Local Top
According to Fibonacci retracement levels theory, after a significant price change in one direction, the price tends to partially retrace before continuing in the same direction. This theory can also help identify future peak levels.
Based on the most recent portion of the price decrease, the next resistance level for MKR is at $1,615. Combining this with the readings from the weekly timeframe, we can expect strong resistance between $1,615 and $1,650.
In case of a loss of momentum, there could be a retest of the minor support area at $1,350. However, this would not invalidate the bullish MKR price forecast and may just be a temporary setback before new highs are reached.
The daily RSI is currently above 50 and increasing, supporting further price increases.
Closing Thoughts: Potential Support and Resistance Levels
While there is a bullish outlook for MKR’s price, it’s important to monitor key support and resistance levels. A close below the $1,350 horizontal support area in the daily timeframe could indicate that a local top has been reached.
If this happens, we could see a potential 30% drop in price with support at $1,000.
Hot Take: Maker (MKR) Soars to New Heights
Maker (MKR) has experienced significant growth this year, reaching a new yearly high and breaking long-standing resistance. With a bullish outlook and potential for further gains, MKR continues to attract attention in the crypto market.
However, it’s important to stay vigilant and keep an eye on key support and resistance levels to gauge the sustainability of this upward trend.
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