Will Maker (MKR) Continue Its Rebound?
Maker has rebounded recently, but how stable is this renewed bull run?
What is Maker? Maker (MKR) is a decentralized cryptocurrency that operates on the Ethereum blockchain.
It is a governance token used to manage the MakerDAO platform, which is a Decentralized Finance (DeFi) protocol.
MKR has experienced some recent market trends and developments, so let’s the potential growth prospects of this cryptocurrency.
MKR's Rally
MKR has started rebounding from the descending channel that it has been stuck in since May 2021.
It broke from its descending trendline it has been stuck in since August 2021, and crossed above the 200 Simple Moving Average (SMA), which acts as mobile support and resistance.
These two indicators suggest MKR has turned bullish, and investors should keep an eye on this cryptocurrency.
While MKR had a big day on Wednesday when it increased by 17%, it is unclear whether this strong rally will continue. Currently, MKR is slightly overbought, which means that the price may start to drop or range.
Historically, each time MKR reached overbought levels on the Relative Strength Index (RSI), it started falling or ranging. However, it's essential to keep in mind that the RSI can be overbought for a few days, so it doesn't mean that it will change its current trend immediately.
Support and Resistance
If MKR starts retracing, the $700 and $500 support levels are ready to step in and halt the retracement. These support levels have been significant in the past and have helped to stabilize MKR during bearish phases.
On the other hand, if the rally continues, the next resistance stands at $1,700. This level has been a significant support in the past. If MKR manages to break above it, it could lead to further growth in the cryptocurrency's price.
Bottom Line: MKR recently rebounded from the bear market and crossed above the 200 SMA, suggesting that the cryptocurrency may be turning bullish. However, it is uncertain whether this rally will continue, and investors should keep an eye on the support and resistance levels mentioned above.
