Maker / USD Technical Analysis: Check The Pressure
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- Maker is bullish in the short-term, although bearish MACD divergence looms over the lower time frames
- The MKR / USD pair has reached the initial bullish target of the inverted head and shoulders pattern
- The cryptocurrency is bullish over the medium-term, with price trading above its 200-day moving average
Maker / USD Short-term price analysis
In the short-term, Maker remains bullish as price is still trading above all key moving averages across the four-hour time frame.
The recent rally in the MKR / USD pair has created sizeable amounts of bearish MACD divergence on the four-hour time frame, which if reversed would take the pair back towards the initial breakout point.
Traders should pay close attention to the MKR / USD pairs 50-period moving average on the four-hour time frame, as a move below this key moving average may signal a stronger technical reversal lower.
MKR / USD H4 Chart (Source: TradingView)
Pattern Watch
A small head and shoulders pattern is starting to form on the four-hour time frame, which could signal a stronger technical reversal.
Key Moving Averages
Price is currently trading above the pair’s 50-period moving average, the bullish short-term outlook will remain intact while price trades above the 50-period moving average.
MACD
The MACD indicator on the four-hour time frame is currently attempting to correct higher following the bearish reversal in the cryptocurrency earlier this week.
MKR / USD Medium-term price analysis
Maker remains bullish over the medium-term, with the cryptocurrency trading well above its 200-day period moving average for the tenth consecutive day.
The recent up move has also invalidated the bearish head and shoulders pattern on the daily time frame, which has helped to relieve bearish medium-term pressure.
Technical indicators on the daily time frame are turning lower, although they have yet to turn bearish.
MKR / USD Daily Chart (Source: TradingView)
Pattern Watch
Aside from the bearish head and shoulders pattern being negated on the daily time frame, the initial descending triangle breakout point offers a potential bearish target if a deeper price retracement occurs.
Key Moving Averages
If we see the recent technical reversal gathering pace, traders should carefully watch the pair’s 200-day moving average for signs of a shift in the cryptocurrencies medium-term outlook.
Relative Strength Index
The RSI indicator has corrected from extremely overbought conditions on the daily time frame but has yet to turn bearish.
Conclusion
Maker retains its bullish short and medium-term bias, although downside risks are currently gathering after the cryptocurrency reached its initial short-term bullish target.
Traders should closely monitor the MKR / USD pair if selling pressures start to accelerate, as a potential technical correction back towards the descending triangle patterns breakout point may occur.
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