Maker (MKR) has recently shown a notable technical development on its 2-hour chart, where it appears to be breaking out from a falling wedge pattern as highlighted by ZAYK Charts, an analyst. This pattern typically signals a bullish reversal, suggesting potential upward momentum for MKR. Trading at $2,735.87 at press time, MKR has gained 5.42% over the past 24 hours, with a trading volume of $64,084,413.
The falling wedge formation, characterized by two converging trendlines, has been a critical aspect of MKR’s recent price action. The upper trendline has acted as a persistent resistance, while the lower trendline has provided consistent support. Recently, the price has breached the upper trendline, signaling a potential shift in market sentiment towards a bullish outlook.
In terms of support and resistance, several levels are crucial for understanding MKR’s potential movements. The primary support level is situated around $2,580, aligning closely with the lower trendline of the falling wedge. This level has proven to be a reliable point of support during the price’s recent consolidation phase. A secondary support level, near $2,420, also stands out, having been significant in previous market activities.
Resistance levels play a crucial role in determining potential price ceilings. The first resistance level to watch is approximately $2,790, situated just above the recent breakout point. This level could act as a barrier for the price as it attempts to advance further. A more substantial resistance is expected around $3,160, which aligns with the projected target derived from the wedge pattern. This target suggests a potential increase of around 15.23% from the breakout point.
Additionally, analyzing the current technical indicators provides further insight. The 1-day RSI for MKR reads 53.90, indicating a balanced market sentiment without signs of being overbought or oversold. This neutral RSI suggests that there is room for price movement in either direction. Conversely, the 1-week MACD is currently trading below its signal line, which could imply a forthcoming trend reversal or a period of consolidation before any significant price changes.
