Maker (MKR) Price Bounces From Previous Resistance, How High Will It Rise?
The Maker (MKR) price bounced off the previous resistance level and broken the short-term downtrend structure. There is a possibility that it will continue to rise in the near future.
The MKR price has been trading inside an ascending triangle since July 14th. This is a bullish pattern that often leads to a breakout in most cases.
Indeed, the price has broken above this pattern, reaching a new yearly high at $1,600. This move confirmed the previous horizontal support zone at $1,650 as resistance (red arrow) and the price has retraced since then.
Despite the retracement, the MKR price has successfully flipped the triangle’s resistance as support, forming a bullish engulfing candle yesterday (green arrow). This indicates that the bulls are buying aggressively on minor dips, expecting the uptrend to continue.
An upward movement equal to the height of the pattern would take the MKR price to $1,900, an increase of 34.23% from the current price.
The daily RSI favors a bullish continuation as it bounced from the 50 level and formed a hidden bullish divergence.
Breaking the Downtrend Structure
The MKR price has formed a short-term downtrend structure since reaching a local high at $1,600. This structure had a key level at $1,410.
Today, the MKR price has successfully broken above this key level, indicating that the previous downtrend has ended and a new uptrend may begin.
Currently, the price is in the process of confirming this key level as support. If successful, it could retest the yearly high at $1,600 in the coming days.
The most likely scenario suggests that the MKR price will rise in the coming days. The immediate target is $1,600 and potentially higher towards $1,900.
This view could be invalidated if the price breaks below the previous triangle’s resistance at $1,350.
Disclaimer: Please note that this article is for informational purposes only and should not be taken as investment advice. As an investor, it is important to do your own research before making any decisions. We are not responsible for any investment decisions you make based on this information. Not Financial Advice.
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