MKR: Bullish Pennant

Maker (MKR) technical analysis:

Trade setup: Trends have reversed to uptrend but has reached our target of $1,000-$1,100 resistance zone, where it got rejected. Notice the long wicks on recent daily candles, indicating heavy selling. After a 100% gain from recent lows ($500) on June 10th, we expect some profit taking around the $1K resistance area. Now it’s consolidating in a Bullish Pennant pattern and we wait for a breakout. We highlighted MKR in our recent trading video “5 coins with big upside near-term”. Maker is a well established DeFi platform with real users and revenues , which forms a solid foundation for investors looking to trade it.

Pattern: Bullish Pennant – forms typically following a sharp advance, followed by a brief triangular shaped consolidation in price (a small change in direction), before the previous uptrend (bullish) typically resumes. The period of consolidation should have lower volume and the breakouts should occur on higher volume.

Trend: Uptrend across all time horizons (Short- Medium- and Long-Term).

Momentum is Bullish but inflecting. MACD Line is above MACD Signal Line and RSI is above 55 but momentum may have peaked since MACD Histogram bars are declining, which suggests that momentum is weakening.

Support and Resistance: Nearest Support Zone is $800 (previous resistance), then $600 – $700. The nearest Resistance Zone is $1000 – $1100.


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