Crypto News- Today, the price of Maker (MKR) accomplished a noteworthy feat, reaching a yearly high of $1,650, marking a significant peak not witnessed since May 2022.
24 October Maker Price Hits a Fresh Annual High – Is 2,000 Dollars the Next Milestone?
Regrettably, the price was unable to maintain its upward trajectory, subsequently slipping below the critical $1,600 resistance level. The question now is, what lies ahead for MKR? It’s worth noting that the MKR price has been on an upward trajectory, closely following a steep ascending support trendline since June. In August, this trendline was effectively validated, which allowed the price to resume its climb.
During this period, the bounce, represented by the green icon, also confirmed the $1,000 horizontal area as a substantial support level.
On October 24, MKR surged to its new yearly high at $1,651, a level unseen since May 2022. Despite this surge, the cryptocurrency was unable to secure a closing price above the $1,600 resistance area, as evidenced by the formation of a pronounced long upper wick (indicated by the red icon).
An intriguing aspect of this price surge is the deposit of a significant sum of MKR, worth $14.6 million, to Binance by a whale since the commencement of October. Typically, such substantial deposits on centralized exchanges are suggestive of selling pressure. However, this scenario diverged from the norm, as MKR continued to appreciate significantly throughout October.
The weekly Relative Strength Index (RSI) presents a positive outlook. Traders frequently rely on the RSI as a momentum indicator to assess whether a market is in an overbought or oversold condition, which, in turn, informs their decisions on accumulating or selling assets.
When the RSI readings are above 50 and are part of an upward trend, it suggests that the bulls are still holding a favorable position. Conversely, readings below 50 signify the opposite scenario.
In the present situation, the RSI is both ascending and positioned above the 50 mark, signaling clear indicators of a bullish trend. Despite the current reading indicating an overbought condition, there are no bearish divergences present to forewarn of an imminent decline.
Will MKR’s Price Surge Lead to the 2,000 Dollars Milestone?
Despite achieving a yearly high in MKR’s price, a closer look at the daily timeframe suggests the possibility of a retracement before any further upward movement.
There are two key reasons supporting this viewpoint. First, MKR’s price is currently trading within the confines of an ascending wedge pattern, typically considered a bearish formation. This is evident from the fact that the price validated the resistance line of the wedge during its yearly high today, as indicated by the red icon.
The second reason pertains to the emergence of a growing bearish divergence, illustrated by the green line on the daily Relative Strength Index (RSI). A bearish divergence comes into play when there is a decline in momentum concurrent with a price increase, often serving as a harbinger of potential price declines.
In the event that a decline materializes as a result of this divergence, the altcoin could potentially experience a 15% drop, ultimately revisiting the ascending support line.
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