The Maker (MKR) Price Hits Yearly High of $1,650
The price of Maker (MKR) has reached its highest level since May 2022, hitting a yearly high of $1,650. However, it failed to sustain the increase and fell below the $1,600 resistance area.
MKR Briefly Reaches $1,650
Since June, the MKR price has been following an ascending support trendline. In August, this trendline was validated before the price continued to rise. The recent bounce also confirmed the $1,000 horizontal area as support.
On October 24, MKR reached a new yearly high of $1,651. Despite this increase, it was unable to close above the $1,600 resistance area and formed a long upper wick.
An interesting observation is that a whale deposited $14.6 million worth of MKR to Binance in October. Typically, such large deposits indicate selling pressure. However, in the case of MKR, the price has continued to rise.
MKR Price Prediction: Is $2000 the Next Step?
While the MKR price has reached a yearly high, there are indications that a retracement could occur before further increases. Firstly, the price is trading within an ascending wedge pattern, which is considered bearish. The resistance line of the wedge was validated during the recent high.
Secondly, there is a growing bearish divergence in the daily RSI indicator. This suggests that momentum is decreasing while prices are increasing and often precedes price drops.
If a decrease occurs due to this divergence, MKR could fall by 15% towards the ascending support line. However, if there is a breakout above the $1,600 area and the wedge pattern, MKR could see a 45% increase towards the next resistance at $2,300.
Hot Take: Maker (MKR) Price Hits Yearly High, but Potential Retracement Ahead
The price of Maker (MKR) has reached its highest level since May 2022, hitting $1,650. However, it failed to sustain this increase and fell below the $1,600 resistance area. While there are bullish indicators such as the weekly RSI and trader sentiment, there are also bearish signals like the ascending wedge pattern and bearish divergence in the daily RSI. This suggests that a retracement could occur before further upward movement. Keep an eye on the breakout above $1,600 for potential confirmation of a bullish trend continuation or a decrease towards the support line.
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