The cryptocurrency market has been in the green for a consecutive week, offering some relief to investors after a turbulent start to the month marked by significant price volatility. Maker Dao has notably emerged as one of the top-performing cryptocurrencies this month.
During a brief period, the Maker Dao token traded within a consolidated range of $1,091.6 to $1,150.5. It even tested its support level, but bullish momentum upheld the price. Subsequently, MKR crypto experienced a noteworthy surge in value.
Following this surge, the token again settled into a consolidated range, fluctuating between $1,243.3 and $1,293.1. Despite several unsuccessful attempts to breach the resistance level over the past week, the token has exhibited a head-and-shoulders pattern, hinting at the potential for a breakout and a shift in future price trends. Currently, MKR is retesting this level and appears on the brink of breaking out of this range.
The Relative Strength Index (RSI) indicates that MKR’s price is trading close to the overbought range, pointing to significant buying pressure and suggesting the possibility of further price increases. Conversely, the Moving Average Convergence Divergence (MACD) shows convergence in its chart, signaling a strong likelihood of bullish momentum in the coming days.
Will MKR’s Price Rebound?
If the bulls continue to strengthen their position, successfully break out of the consolidated range, and maintain the price above the $1,300 threshold, Maker Dao will again prepare to challenge the resistance level of $1,350. This level proved elusive during its last attempt in early August.
Conversely, a price correction is anticipated if the cryptocurrency market experiences increased price volatility or regulatory actions and the bears manage to overpower the bulls. Should the price fail to breach the resistance range, it will likely continue to trade within and test the support level of $1,243.3 in the current week. Furthermore, if MKR dips below this support level, it could initiate a bearish trend, potentially driving the price down to its next support level of $1,150.55 by month-end.
