Maker (MKR) Short-Term Breakout Could Lead to Further Increase

Published on:


The Maker (MKR) price broke out from a short-term resistance level and could soon break out from a long-term one.

The MKR price has fallen under a long-term descending resistance line since reaching an all-time high in March. The decrease led to a low of $504 in December. 

Afterward, the price began an upward movement that was preceded by bullish divergence in the weekly RSI. The indicator is now above 50, confirming the bullish reading. 

However, the MKR price has not broken out from the descending resistance line yet. If it does, the next long-term resistance would be at $1,950. On the other hand, a rejection could lead to a drop toward $525.

MKR/USDT Daily Chart. Source: TradingView

Will Maker (MKR) Price Break Out?

The technical analysis from the daily time frame gives a similar reading, since the price has fallen under a descending resistance line since August. The line has caused numerous rejections (red icons), the most recent on March 7. While that initially caused a sharp sell-off, the Maker price bounced and reclaimed the $790 horizontal area, which is expected to provide support again. 

If the price breaks out from the resistance line, the next resistance would be at $1,150. On the other hand, if it falls below the $790 support area, a drop to $600 could follow.

The daily RSI is at 50, providing a neutral reading. Therefore, it does not help in determining whether the price will break out or down.

Maker (MKR) Price Resistance
MKR/USDT Daily Chart. Source: TradingView

Finally, the two-hour chart supports the possibility of a breakout. It shows that the price broke out from an even shorter-term descending resistance line and validated it as support afterward. So, a breakout from the longer-term resistance seems to be the most likely scenario.

Short-Term Maker (MKR) price movement
MKR/USDT Two-Hour Chart. Source: TradingView

To conclude, the most likely MKR token price forecast is a breakout from the current resistance line and increase toward at least $1,150. On the other hand, another rejection could lead to a drop toward $790.

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

Disclaimer

BeInCrypto strives to provide accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. You comply and understand that you should use any of this information at your own risk. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.



Source link

Related