Maker’s (MKR) Yearly-High Hit Indicates Caution, Here’s Why
- MKR could not hold on to the $1,650 yearly high after the resistance at $1,600 took over.
- Although the RSI signaled a bullish momentum, MKR was becoming slightly weak.
- Should buying pressure persist, MKR may inch toward $1,600 one more time.
The price of Maker (MKR) briefly tapped $1,650 in the early hours of October 24. The value was the highest price the token has reached throughout 2023. On a 90-day basis, Maker’s price has increased by 35.82%, almost double the performance of Bitcoin (BTC) within the same period.
On the daily timeframe, MKR has only begun recovering from a market structure dominated by sellers between October 1 and 12. Because bulls were not entirely in control, MKR got rejected from the aforementioned hike and was back to changing hands below $1,600.
However, there is a strong support at $1,374. So, if sellers can increase their presence, MKR may still have the strength not to drop below $1,450 to $1,500. Meanwhile, the daily chart also showed that the token’s volume increased briefly during the jump to $1,650.
However, the decline in volume, alongside the price increase means bullish momentum could be waning. Therefore, an increase to $1,700 within the next 24 hours may not be plausible. However, the Relative Strength Index (RSI) reading revealed that buying momentum was gaining ground over the bearish side.
As of this writing, the RSI was 67.53. Usually, reading below 50 suggests that bears have an advantage. But since the indicator was well above 50, it means a significant drop may not happen. At the same time, an increase within one day may not do much to hit $1,650 again.
The Journey to $2,000 Is Not Here
A few weeks back, crypto trader Nebraskangooner opined that MKR may continue to consolidate above the $1,374 support. He also mentioned that the token had the tendency to hit between $1,800 and $2,000.
From the technical outlook, this projection might take more than a few days to achieve. The reason was that MKR was currently overbought. This condition was revealed by the Bollinger Bands (BB) because the upper band of the BB touched the MKR price.
As a result, the altcoin has the potential to fall by 5% in the short term. But this is not expected to happen in the next 24 hours. Between the time of writing and October 25, MKR may briefly rise in the direction of $1,600.
This is because the Moving Average Convergence Divergence (MACD) was 9.11 and the 12-period EMA had crossed over the 26-day EMA. While this signals a bullish momentum, the increase may only be mild.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
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