Connect with us
Active Currencies 15126
Market Cap $2,445,509,778,325.70
Bitcoin Share 56.32%
24h Market Cap Change $-1.89
Analysis

Maker [MKR] hit a key resistance level- Will shorting yield profit?

2min Read
Posted:
Avatar
editors
Maker [MKR] hit a key resistance level- Will shorting yield profit?
Avatar
editors
Posted:

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 reclaimed November’s pre-FTX level.
  • The coin saw short-term sell pressure, which could undermine the uptrend momentum. 

Maker’s [MKR] rally could slow down as it faces key obstacles on its upward trajectory. The token hiked by 16% and 20% in the past 24 hours and seven days, respectively, according to CoinMarketCap.

However, it has reached a crucial resistance level of $915, which could derail the momentum of the uptrend. 

Read Maker’s [MKR] Price Prediction 2023-24

In another new development, MakerDAO has approved Aave’s Direct Deposit Module with a debt ceiling of 5 million DAI units. The move is aimed at stabilizing the borrowing rate of DAI at 2%. The liquidity provision will also extend to Aave’s rival, Compound Finance. 

The $915 obstacle – Can bulls bypass it?

Source: MKR/USDT on TradingView

MKR consolidated within the $682 – $795 (orange parallel channel pattern) throughout February. However, it started March on a high note after inflicting a bullish breakout. It hit the $900 zone, reclaiming its pre-FTX levels and offering over 10% gains. 

However, $915 is a crucial resistance level, which could slow down the uptrend momentum. Notably, the RSI also hit the overbought zone, which could further fuel the probability of price reversal. 

A correction could see MKR settle at $884, $836, or the channel’s upper boundary of $795. These levels could offer shorting opportunities if the correction is confirmed. Short-sellers should only make moves if MKR fails to close above $915. 

A break above the $915 obstacle will invalidate the above bearish thesis. Such an upswing could push bulls to target $982 and $1100 – a 20% potential hike. 

Is your portfolio green? Check out the MKR Profit Calculator

MKR saw short-term selling pressure alongside a negative sentiment

Source: Santiment

According to Santiment, MKR’s weighted sentiment dropped deeper into the negative territory.

In addition, short-term sell pressure increased, as shown by a spike in supply on exchanges, indicating more MKR tokens were on sale as investors sought to lock in short-term profits. If the trend continues, MKR could fail to close above $915, giving bears more influence in the market. 

However, the Funding Rate remained positive, showing MKR was bullish in the derivatives market, which could boost further uptrend momentum. 

 

Previous:
Next:

Share

Avatar
Saman Waris works as a News Editor at AMBCrypto. She has always been fascinated by how the tides of finance and technology shape communities across demographics. Cryptocurrencies are of particular interest to Saman, with much of her writing centered around understanding how ideas like Momentum and Greater Fool theories apply to altcoins, specifically, memecoins. A graduate in history, Saman worked the sports beat before diving into crypto. Prior to joining AMBCrypto 2 years ago, Saman was a News Editor at Sportskeeda. This was preceded by her stint as Editor-in-Chief at EssentiallySports.
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.