Maker price rejects $1K, Will it see rebound from demand zone?

• Maker price rejects $1K, and fell 13% on previous week. 
• MKR price trading below the 50 and 200 day EMA showcase downtrend. 
• Maker crypto price eroded the gains of past months. 

Maker Price fell 13% in the previous week and formed a bearish pattern. MKR price corrected 30% approx from the recent swing high at $981.00 and lost the majority portion of previous gains. 

MKR price rejects the 200 day EMA and drops below the 50 day EMA showcase positional trend has reversed in the downward direction. However, the price is approaching the crucial support of $600 and bears might lack the downside momentum. The trading volume is in a declining phase indicates less number of participants are active current levels as compared to past few months. 

Maker price is trading at $676.00 with an intraday decline of -0.73%. The 24 hour volume to market cap ratio at 0.031. The pair of MKR/BTC is trading at 0.02467 with an intraday decline of -0.48%. The chart structure of MKR/BTC is in downtrend and near to the 52 week low. It shows low correlation between both the pairs. 

At the beginning of March, Maker price gained momentum and attempted to break out of the $1000 mark. Sadly, prices failed to hold the higher levels and got a sharp rejection. The downfall took halt near $600 and prices formed a bullish hammer candle. Therefore, $600 turned out as a support and will act as a demand zone for bullish traders.

Will Maker Price defend $600?

Maker Price consolidated for a few weeks in a narrow range between $640.00 to $740.00 and showed signs of base formation. Recently, MKR price attempted to break the higher range to expand upside but got rejected. The overall market sentiment turned bearish which negatively impacted the prices of Altcoins and MKR is one of them. 

If the buyers succeed to defend the $600 support then long term investors are safe. However, if the price drops below the $600.00 then bears may try to drag it down toward the yearly lows. The technical analysis suggests, MKR price is in bear grip but till it holds $600.00 the downside seems to be limited. 

MKR price formed strong base near $600 

MKR price is forming a bearish engulfing candle and trading near the 2 months low. Maker price formed a strong base near $600.00 and it will be difficult for the bears to drag the prices down. The technical indicators like MACD had generated a negative crossover and histogram bar is declining. It indicates bearishness and prices are likely to trade with the bearish bias. The RSI at 41 sloping down denotes weakness and prices may test oversold territory. 

Conclusion

Maker price fell 13% on a weekly basis and the positional trend reversed in the downward direction. However, the MKR price is approaching the demand zone and the downfall might lack momentum. The technical analysis suggests, Maker price is in bear grip but till it holds $600.00 the downside seems limited.

Technical levels

Resistance levels : $823.00 and $981.00

Support levels : $600.00 and $500.00

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.