Maker (MKR) has been experiencing a bearish swing structure on the weekly chart, with a recent surge in price not enough to sustain the bounce. Despite a 60% increase in price due to increased demand and a momentum shift, the burning of $156.77 million worth of MKR did not initiate the expected momentum. Data from Santiment showed a rise in active addresses and network growth, but the token was facing significant resistance at the $1,750 mark, making a breakout challenging. Traders were advised to consider taking profits, as the bearish trend on the weekly timeframe suggested a potential reversal.
The price of Maker surged to the $1,600 region, with a resistance zone extending up to $1,730 that has been respected since February 2022. The lack of reaction from the 78.6% Fibonacci retracement level in recent weeks indicated a possible continuation of the downtrend. Indicators such as the CMF and MACD showed sustained capital outflows and sell pressure, with the MACD on the verge of a bullish crossover below the zero line. Despite the bearish outlook, a breakout beyond $1,800 and a retest as support could signal a potential reversal, with a move towards $2.4k on the cards.
On the 3-month liquidation chart, a cluster of liquidations was noted just above $1.6k, reaching up to $1,755, coinciding with the technical resistance zone. Maker traders were advised to consider taking profits as the token approached key overhead resistance and to monitor lower timeframes for signs of bullish weakness. It was also emphasized that rushing into short positions may not be prudent, as the market dynamics were still uncertain. The information provided was solely the opinion of the writer and should not be considered as financial, investment, or trading advice.
In conclusion, Maker (MKR) has shown a bearish swing structure on the weekly chart, with a recent price surge not enough to sustain a bounce. Despite bullish signals such as increased active addresses and network growth, the token faced significant resistance at $1,750, making a breakout challenging. Traders were advised to consider taking profits as the bearish trend suggested a potential reversal. Monitoring lower timeframes for signs of bullish weakness and being cautious about entering short positions were also recommended. The information provided was the writer’s opinion and not financial advice.
