Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- MKR retested the $1200 psychological level.
- The recent higher highs marked by heightened sell pressure.
Maker [MKR] recorded an impressive recovery at the end of Q2 2022 and extended the rally into Q3. The altcoin hiked +100% in less than two months, tipping it to grace a new 2023 high of $1250.
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But the altcoin reversed some recent gains as it retraced toward its previous high of $1100. Nevertheless, higher and lower timeframes had bullish bias at the time of writing. So, bulls could seek re-entry, especially if Bitcoin [BTC] doesn’t record more sharp losses in the next few days.
Will the bulls defend the $1000 level?
Source: MKR/USDT on TradingView
MKR’s rally in the past few weeks tipped it to clear the previous 2023 high of $980. However, the price action retraces to the November 2022 level of $1100. Besides, during slight pullbacks, the recovery has rebounded from a key ascending trendline support (orange).
So, the higher high of $1050 and the November 2022 high of $1100 could offer resistance to short-sellers. The above $1050 – $1100 aligns with the ascending trendline support. Hence, MKR could rebound from $1050 – $1100, especially if BTC doesn’t lose hold of $29k.
If that’s the case, going long from the $1050 – $1100 zone, targeting the August 2022 high of $1300, could offer a good risk ratio.
However, a drop below the ascending trendline support will invalidate the bullish set-up. Such a drop could set MKR to retest $980 or the $800 zone, especially if BTC drops below $29k.
Meanwhile, the RSI (Relative Strength Index) hit the overbought zone, and the OBV (On Balance Volume) edged higher. It indicated massive buying pressure and demand in the past few weeks.
Sell pressure increased amidst the recovery
Source: Santiment
According to Santiment, MKR saw intensified selling pressure as it made higher highs as short-term investors locked profits at every potential resistance level.
How much are 1,10,100 MKRs worth today?
For example, the Supply on Exchanges spiked and rose throughout the rally. It denotes more MKR tokens moved to exchanges for offloading/sell-offs.
Similarly, the 90-day Mean Coin Age recorded rising slopes and massive drops with an overall downtrend during the recovery. It shows that accumulated tokens were moved frequently, denoting the overall sell pressure.
