MKR Technical Analysis: Price May Fall to $5102.02, Rise Again

MKR token is the governance token of the Maker protocol – smart contracts that power Dai. Dai is a decentralized stablecoin that can be used for executing digital currency transactions anytime, anywhere. The MakerDAO ecosystem is continually growing with over 400 decentralized apps and services integrating Dai. The following MKR technical analysis will predict the price trends for the next two days:

Past Performance

On April 26, 2021, MKR started trading at $3820.98. As of May 2, 2021, MKR closed at $4906.94. Thus, in the past week, the MKR price has surged by roughly 28%. In the last 24 hours, MKR has traded between $4911.17-$5487.95.

https://wordpress-1016567-4521551.cloudwaysapps.com/wp-content/uploads/2021/05/mkr-technical-analysis-price-may-fall-to-5102-02-rise-again.png

Day-Ahead and Tomorrow

Currently, MKR is trading at $5428.64. The price has increased from the day’s opening price of $4911.17. Thus, the market seems to be uptick.

The MACD and signal lines have just turned negative. Moreover, a bearish crossover by the MACD line over the signal line has occurred. Thus, the overall market momentum is bearish. Hence, we can expect a price pullback soon.

Currently, the RSI indicator is at 37% and continues to fall further. Thus, selling pressures are high. Hence, the RSI indicator gives further credence to an impending price pullback.

The OBV indicator is upward sloping but has started falling steadily. Hence, selling volumes are slowly mounting. High selling activity will exert downward pressure on the MKR price.

Thus, like the MACD and RSI oscillators, the OBV indicator is also pointing towards a price pullback. However, we have to wait and watch to see if this price pullback is temporary or a bullish trend reversal.

MKR Technical Analysis

As per technical analysis, currently, the price is above the first Fibonacci pivot resistance level of $5322.35. The price may fall up to the Fibonacci pivot point of $5102.02. Thereafter, we have to wait and watch to see if the price falls further or starts rising again.

The price may soon test and fall below the 23.6% FIB retracement level of $5351.83. By day end, if the price retests and breaks out of this level, then probably the bullish trend is strong enough to sustain till tomorrow.