Maker / USD Technical Analysis: Short-term Obstacle
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- Maker has a neutral short-term bias, with the cryptocurrency testing back towards its key 200-period moving average on the four-hour time frame
- The MKR / USD pair has a bullish medium-term trading bias, with price still trading above its 200-day moving average
- The daily time frame shows a bullish inverted head and shoulders pattern
Maker / USD Short-term price analysis
Maker has a neutral short-term trading bias, with the cryptocurrency testing back towards its 200-period moving average on the four-hour time frame.
The four-hour time frame also shows the formation of a bearish head and shoulders pattern, with the MKR / USD pair struggling to break above its former monthly trading high.
Technical indicators on the four-hour time frame have turned bearish as the recent decline gathers pace.
MKR / USD H4 Chart (Source: TradingView)
Pattern Watch
Buyers will soon need to start creating bullish higher price highs or the bearish head and shoulders pattern could start to come into play.
Relative Strength Index
The RSI indicator has turned bearish on the four-hour time frame and is signaling growing selling pressures.
MACD Indicator
The MACD indicator on the four-hour time frame has now turned bearish.
Maker / USD Medium-term price analysis
Maker has a bullish medium-term bias, with the cryptocurrency still holding firm above its trend defining 200-day moving average.
Price continues to trade close to the neckline of a bullish inverted head and shoulders pattern on the daily time frame, with the pattern holding a strong upside projection.
Technical indicators on the daily time frame are starting to turn lower as selling pressure increases.
MKR / USD Daily Chart (Source: TradingView)
Pattern Watch
Traders should note that the bullish inverted head and shoulders pattern on the daily time frame would take the cryptocurrency towards levels not seen since May 11th, 2018.
Relative Strength Index
The RSI indicator on the daily time frame is starting to turn bearish and is signaling that selling pressure is increasing.
MACD Indicator
The MACD indicator has turned bearish on the daily time frame, with the MACD signal line and the MACD histogram moving lower.
Conclusion
Maker is starting to come under downside pressure in the short-term as buyers struggle to move the cryptocurrency to fresh trading highs.
The bullish pattern on the daily time frame suggests the MKR / USD pair is likely to continue to trade higher over the medium-term, while the four-hour time frame is warning that a deeper technical correction may occur in the near-term.
For a quick introduction on Maker and its DAI stable coin, head over to our coin guide here.
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