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Maker: As MKR sees ‘Cup-and-Handle’, watch out for THESE resistance levels
The cryptocurrency market has been abuzz with the recent surge in prices, particularly with Ethereum’s new highs. This development has sparked a ripple effect across the altcoin space, with many tokens experiencing significant gains. One such token is Maker [MKR], which is now making waves as it sees a rare ‘Cup-and-Handle’ pattern emerge.
As MKR approaches this significant technical indicator, investors are left wondering what to expect next. In order to gain clarity on the future trajectory of MKR’s price, we must examine the chart more closely.
A breakout from a prolonged downtrend
Between March and November 2024, MKR experienced a prolonged downtrend, characterized by lower highs and lower lows. However, in late November, the token successfully broke out of this channel, signaling a potential reversal. This sudden shift in momentum has led many analysts to suggest that the token could be on the cusp of a massive rally.
Key resistance levels to watch
Currently trading at $1,746, MKR is at a critical crossroads. To the upside, key resistance levels come into play at $2,200 and then again at $3,800. Additionally, there exists a potential high of $4,400, which may act as a formidable barrier for bulls.
To sustain bullish momentum, it will be essential for MKR to reclaim its critical 200-day moving average ($1,919). Failure to do so could result in the token retesting support near $1,500.
Recent futures market activity suggests reduced speculative activity, with Open Interest (OI) declining by -8.67% to $78.83 million over a short period. Despite this decrease, trading volume has increased by 41.59% to $184.94 million. Historically, OI has displayed spikes during periods of heightened volatility. While the recent dip may suggest a pause in speculative momentum, it does not entirely negate the possibility of renewed activity as bullish sentiment builds around Ethereum’s growth.
Furthermore, on-chain data reveals that an astonishing 62% of MKR holders remain in profit at the current price. This metric, coupled with the fact that 84% of investors are classified as long-term holders, provides a telling indication of confidence in the token’s potential.
In conclusion, it is essential for investors to keep a watchful eye on these critical resistance levels as MKR navigates this pivotal juncture. As Ethereum continues its ascent, it is likely that MKR will closely follow suit.
Source: ambcrypto.com
