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Cryptocurrency analyst Ali Charts shared that he believes a drop in Maker’s (MKR) price is imminent in a Twitter post today. According to the post, MKR’s TD Sequential presented a sell signal on the weekly chart. This comes after the altcoin experienced a 27+% price increase over the past month.
#MakerDAO | The TD Sequential presented a sell signal on $MKR weekly chart after an 173% bull rally. A weekly close below $1,163 could confirm a correction to $1,037 or $935.
— Ali (@ali_charts) August 16, 2023
The 100-weekly moving average at $1,295 can serve as an invalidation point if #MKR closes above it. pic.twitter.com/SxP2QS5mRG
Ali also shared that a weekly close below $1,037 or $935 will confirm his suspicions that MKR’s price is getting ready to drop. On the other hand, if the altcoin’s price is able to climb above the 100-day MA line at $1,295, then the bearish thesis may be invalidated.
From a technical perspective, MKR’s price was attempting to break above the 100 SMA line on its weekly chart. This technical indicator was also around the same level as the major resistance mark at $1,305.
If the altcoin is able to close the current weekly candle above this level, then it will open up a path for it to potentially rise to $1,870 in the coming months. On the other hand, if Ali’s bearish thesis is validated, the altcoin may be at risk of dropping to $850 in the upcoming couple of weeks.
From a shorter-term perspective, the altcoin’s price had dropped below the 9-day EMA line over the past 48 hours, and was resting on the 20-day EMA line as a result. Should MKR close today’s daily candle below this technical indicator, it will be at risk of falling to the 50-day EMA line at around $1,088 in the next few days.
On the other hand, a daily candle close above the 9-day EMA line at $1,235 will invalidate the bearish thesis. In this scenario, the altcoin’s price may attempt to overcome the $1,305 resistance level.
Traders and investors will want to take note of the fact that the 9-day EMA line was looking to cross bearishly below the 20-day EMA line. Should this cross take place, it will signal that MKR’s price has entered into a short-term negative cycle and it may drop in the following week.
Disclaimer: The views and opinions, as well as all the information shared in this price analysis, are published in good faith. Readers must do their own research and due diligence. Any action taken by the reader is strictly at their own risk. Coin Edition and its affiliates will not be held liable for any direct or indirect damage or loss.