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Disclaimer: The information presented does not constitute financial advice, investment advice, trading advice or any other form of advice and is solely the opinion of the writer
- MKR has both bullish momentum and structure on the one-day chart
- Demand on the spot markets was encouraging, showing that the token is likely to break above the $1,500 resistance
Maker [MKR] is up 35% in just over two weeks. The rally from the $1071 level has not stalled yet, although the bears have somewhat beaten the bulls from the $1500 high MKR reached a few hours ago.
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A previous analysis from AMBCrypto a few days ago pointed out that the $1235-$1279 zone was a support area where the bulls could initiate a new move to the upside. How much further can this rally extend?
The Fibonacci extension levels showed that the rally was likely to go past $1500
Source: MKR/USDT on TradingView
On the one-day chart, MKR’s market structure was strongly bullish. The June into July rally saw a pullback to the $1037 level and consolidated there for a few days. This was the 61.8% retracement level. The move past $1121 on August 31 put a bullish spin on the structure and the rally continued to move higher.
The Relative Strength Index (RSI) stood at 72, showing intense northerly momentum, but worryingly, On-Balance Volume (OBV) has only shown a relatively small increase in September. The conclusion remained positive for buyers and it was likely that MKR would move past $1500 to the 61.8% expansion level at $1700.
However, it was possible that MKR would face resistance at the 23.6% extension level at $1497 and witness a small dip to retest the former resistance zone of $1350-$1370. This could give buyers the opportunity to re-enter long positions.
Alternatively, a move above $1500 can also be used to take long positions, although the volatility could disrupt the trade. Therefore, trade management would be particularly important.
Short-term sentiment was firmly in favor of the bulls
Source: Coinalyse
The Open Interest (OI) chart has shown huge gains over the past three days. It rose from $90 million to $130 million, and spot CVD also posted respectable gains. The OI showed that speculators in the futures markets maintained their strong bullish conviction.
Realistic or not, here is MKR’s market cap in BTC terms
The increase in the Spot Cumulative Volume Delta (CVD) highlighted demand in the spot markets and was an encouraging development. It made MKR’s rally above $1500 more credible.