MKR Drops 11% on Bitcoin Pressure, Still Up 6.7% Weekly
1min read The Maker dao token (MKR) has seen a volatile week, with an 11% drop in value due to Bitcoin's selling pressure. However, despite this decline, MKR has still managed a 6.7% gain over the past week. This gain could have been more substantial if not for the sudden losses in Bitcoin prices on Saturday.
Technical analysis of MKR reveals a bearish swing market structure but a bullish substructure. The bearish swing structure indicates a longer-term bearish trend, while the bullish substructure suggests potential short-term upward movement. This substructure, which emerged after the late February rally beyond $1,635, remains intact as long as the price does not fall below $1,115. This provides a cautious optimism for investors, as the On-Balance Volume (OBV) indicator also shows steady buying pressure over the past month.
The retracement to $1,115 in early March did not significantly dampen the bullish momentum, and there has been renewed buying pressure in the past three weeks, with MKR prices bouncing from $1,115 to $1,309. The Moving Average Convergence Divergence (MACD) has climbed above the zero line, although it is barely above this level, indicating a lack of overwhelmingly bullish momentum on the daily chart. The Fibonacci levels also support this analysis, with the price climbing back above the 78.6% level at $1,273, suggesting a possible recovery.
The liquidation heatmap indicates that the $1,500 level is the next target, as it is a strong magnetic zone. Additionally, the $1,160-$1,180 range could attract prices lower. Despite the losses on Saturday, MKR has maintained a bullish trend over the past few days. This short-term bullishness could drive the price to $1,500 once more, according to the analyst's forecast. However, due to the bearish swing structure, bulls should be prepared to take profits and cut losses quickly if the buying pressure begins to slacken.
Ask Aime: Investor sentiment on MakerDAO's MKR amidst Bitcoin's volatility?
