Starting this month on a bearish note, MKR located support above a key level and bounced back. This led to another leg up and is now gaining traction daily with a 15% gain in the past week.
Last month’s bounce off the $778 came as a retracement of the mid-term bearish impulsive movement in the form of a lower low and lower high. Unfortunately, the retracement stopped under $1.8k and MKR resumed the impulsive movement this month.
After dropping steadily for two weeks, the bulls reacted strongly with an interception and the price held above the key $1k level. The price bounced and increased to where it is trading at around $1.3k.
While this key level has continued to provide support, MKR’s landscape appeared to be slowly changing on the daily chart with a new bullish formation. This bullish signal is not valid yet until the price climbs back to the recent high that was rejected earlier this month.
A break above this high should validate a shift in the mid-term bearish trend. Failure to climb back might result in another dip capable of causing a major bearish extension from a long-term perspective. As it stands, MKR appears bullish on the daily chart and might show more strength in the coming days.
MKR’s Key Levels To Watch
Source: Tradingview
On the way up, it may encounter resistance at $ and $ before reclaiming the monthly $1,700 high. A successful break out of this high could shoot the price to $ and $ in the future.
Right now, the $ and $ levels are held as support. If these levels fail to provide support due to a collapse, there’s support at $ and $. Breaking these supports could lead to another severe loss in no time.
Key Resistance Levels: $1,261, $1,389, $1,544
Key Support Levels: $1,035, $875, $778
- Spot Price: $1,169
- Trend: Bearish
- Volatility: High
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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