Maker (MKR) Threatens Further Downside; Can $750 Counter Bears’ Effort

MakerDAO’s MKR printed multiple lower peaks on its price charts recently. That indicated progressive downtrends for the token, and technical indicators supported the narrative.

Nevertheless, the price hovered above a support level. Also, Bitcoin changed hands atop a support region during this publication. Can crypto bulls win the battle, or bears dominate the space again?

MakerDAO 4Hr Timeframe

According to the 4-hour chart, MKR traded inside a descending channel within the previous two weeks. The $800 and $760 regions represented substantial near-term levels. The last few trading days had MKR testing these zones as supply regions.

Southward actions might see MKR on a slight bounce at the $724 mark. Nevertheless, this value area witnessed massive volatility in June. Therefore, the $700 – $720 mark might serve as a demand area again.

The RSI (Relative Strength Index) dropped to 41, highlighting magnified bearish strength. Also, the OBV (On-balance volume) maintained a pronounced fall and indicated buying momentum absence.

MakerDAO 1Hr Timeframe

Analysts plotted FIB retracement zones based on the token’s move to $728 from $838. The 78.6% Fibonacci level stood at $814 and served as resistance. Also, the price action respected most of MKR’s retracement zones.

While publishing this post, $770 acted as a massive resistance, whereas bulls fought to sustain MKR beyond the $754 mark. The A/D, similar to OBV, has seen enormous downtrends in the 1hr chart. The Relative Strength Index and the Awesome Oscillator stared at their neutral levels, hovering around 50 and the zero line, respectively.

Final Thought

The 4hr chart indicated a massive downside move probable for MKR. The alternative token remains primed for downtrends, and Bitcoin failing to maintain the support at $19.6K would mean a drastic MakerDAO slump. The alt has some support beyond $700, but a massive selling wave might overwhelm buyers.

The absence of buying on the on-balance volume was essential. Considering the FIB extension zones, it seemed likely that dropping beneath $750 might see MKR sliding towards the $660 lows.

MKR fans should watch BTC as its action will affect the alt’s actions. Bitcoin remains in bearish hands as it hovers beneath the crucial $20K mark.

Related Posts

Leave a Reply

Your email address will not be published. Required fields are marked *