Maker Price Analysis MKR / USD: Positive Dynamics
MKR has reversed its technical stance.
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- Maker has a bullish short-term and medium-term trading outlook
- The four-hour time frame shows a large inverted head and shoulders pattern
- The daily time frame shows an even larger inverted head and shoulders pattern
Maker has seen a rapid change to its short and medium-term trading status, with the cryptocurrency adding over 25% to its trading value so far this month.
Towards the end of October, the MKR / USD pair started to receive buying interest again, after enduring four-consecutive months of heavy trading losses.
October’s bullish monthly reversal candle hinted that a medium-term price floor may have been established, while the 45% trading gains since October 25th appear to have confirmed it.
The four-hour time frame shows that an inverted head and shoulders pattern has been formed, with the bullish pattern holding substantial upside potential.
The daily time frame shows that the cryptocurrency is trading above its 200-day moving average for the first time since July and has rallied by over 38% since reclaiming its technically bullish status.
A large inverted head and shoulders pattern is also present on the daily time frame, with the $800 resistance level the neckline of the bullish reversal pattern.
A rally above the $800 level would be extremely bullish for the cryptocurrency, as the inverted head and shoulders pattern on the daily time frame has an upside projection that would add around 90% to the value of the MKR / USD pair.
According to the latest sentiment data from TheTIE.io, the short-term sentiment towards Maker is bullish, at 66.00 %, while the overall long-term sentiment towards the cryptocurrency is neutral, at 56.00%.
Upside Potential
The four-hour time frame shows that a large inverted head and shoulders pattern is forming, with the $720 level the neckline of the large bullish pattern.
Key technical resistance for the MKR / USD pair above the $720 level is currently located at the $800 and $850 levels.
Downside Potential
The four-hour time frame is showing that the MKR / USD pair has strong short-term technical support around the recent swing-low, at $565.
Key technical support for the MKR / USD across the medium-term is located at the $500 and $438.
Summary
Maker has strong upside potential over the medium-term, if buyers can trigger the large bullish inverted head and shoulders pattern on the four-hour and daily time frames.
Going forward, the MKR / USD pair could add over 90% to its trading value if the $800 level is overcome.
For a brief outline of Maker and MKR, check out our coin guide here.
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