Connect with us
Active Currencies 16219
Market Cap $3,490,985,889,255.20
Bitcoin Share 55.25%
24h Market Cap Change $-5.50

Maker – Assessing whether a buying chance is in the picture now

2min Read

Maker’s long-term price action was on a downtrend but the pullback faced a key obstacle at $1300…

Maker - Assessing whether a buying chance is in the picture now

Share this article

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion

  • MKR was down 15% after dropping from $1600 to a press time value of $1350
  • MKR’s long-term price trend was negative and offered sellers a market edge

Maker [MKR] dropped 15% from its 2023 high of $1600 to a press time value of $1350. However, the pullback faced a key price imbalance and a bullish level that could make it attractive to buyers. 


Is your portfolio green? Check out the MKR Profit Calculator 


Bitcoin [BTC] dropped below $27k and exerted more bearish pressure across the crypto-market on 11 October. 

However, a key price imbalance on MKR’s price chart held further bearish pressure, as of press time. 

Will the pullback stop at these levels?

Maker

Source: MKR/USDT on TradingView

A price imbalance and FVG (Fair Value Gap) existed on the daily chart at $1326 – $1403 (white). The aforementioned area prevented MKR’s extra price plunge since 2 October. A daily bullish order block (OB) of $1261 – $1306 (cyan) existed below the price imbalance. 

So, the two aforemarked areas could resist extra price drops. If so, a possible recovery from the area could present a long position, with a potential 10% gain if the rally hits the recent lower high level of $1488. 

However, a drop below the daily bullish OB of $1261 will invalidate the aforementioned bullish bias. 

Meanwhile, the RSI faced rejection at the mid-level of the 50-mark and projected a downtick. The movement underscored a spike in selling pressure in the past few days. 

However, spot market demand for MKR has declined since August, as illustrated by the retreating OBV over the same period. 

Long-term price trend flipped negative

Maker

Source: Coinalyze

The Futures market data at hand wasn’t inclined towards the said bullish idea. In particular, the Accumulative Swing Index (ASI) turned negative, indicative of a negative long-term price trend. Put differently, MKR was on a downtrend, making the said bullish idea a risky proposal. 


How much are 1,10,100 MKRs worth today


Besides, the increased sellers’ market edge further confirmed the bearish grip, as highlighted by the negative CVD (Cumulative Volume Delta). Additionally, the Open Interest rates fluctuated and could favor sellers more. 

It meant that the said long idea would be a risky setup. So, tracking BTC’s price action will be vital for risk mitigation. 

Share

Benjamin is a Telecommunication Engineering graduate who is passionate about crypto-markets and unraveling market trends. Armed with charts and patterns, he's interested in making the intricate, complex landscape of digital assets more palatable for every user.
Read the best crypto stories of the day in less than 5 minutes
Subscribe to get it daily in your inbox.
Please check the format of your first name and/or email address.

Thank you for subscribing to Unhashed.