Maker’s [MKR] consolidation phase underway – is a 10% hike likely?
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- MKR formed an ascending triangle chart pattern.
- MKR’s Funding Rate was positive.
Maker [MKR] has gained over 50% after rising from $590 to $790. At press time, it was trading at $764 after facing a bearish order block at $787. However, it formed a bullish chart pattern that could allow for further gains on an upside breakout.
Read Maker’s [MKR] Price Prediction 2023-24
MKR has formed an ascending triangle pattern – Are extra gains likely?
Source: MKR/USDT on TradingView
MKR has gained about 20% in February after building on its January rally. Market volatility after the FOMC meeting has drawn an ascending triangle chart pattern. An ascending triangle pattern is a trend continuation formation, meaning an uptrend could occur with a potential rise based on the triangle’s height.
An upside breakout could drive MKR towards the bullish target at $896 – a potential 12% rise. Thus, bulls could target $896 but set the stop loss at $726. However, the bulls must also overcome the $837 hurdle, which risk-cautious bulls can use to lock in their gains.
A bearish breakout below $726 would invalidate the bullish thesis. The downtrend could be slowed by the 100-day EMA (exponential moving average) of $696 or the support levels at $680 and $633, respectively. These levels could be used as short-selling targets in an extreme downside scenario.
MKR’s Funding Rate remained positive despite short-term selling pressure
Source: Santiment
According to Santiment, the MKR Funding Rate remained positive despite significant fluctuations in demand before and after the FOMC meeting. Steady demand could support the bulls and cause an upside breakout.
Is your portfolio green? Check out the MKR Profit Calculator
However, in the short term, there was also significant selling pressure in the market, as evidenced by the spike in Supply on Exchanges. This shows that more MKR tokens were available for sale on the exchanges. In addition, the supply of MKR outside the exchanges fell, showing that only limited accumulation was taking place at the time of writing.
If more investors choose to lock in short-term gains, the bullish breakout could be delayed or outrightly invalidated. Furthermore, the downside breakout could be accelerated if BTC falls below $23.86k.
