invezz.com
Maker has managed to make a significant gain during the past 24 hours. The token has been on a bearish momentum following the ongoing recession across the market. MKR is down by 22% on a year-to-date (YTD) basis, and it is 70% below its all-time high.
Maker (MKR/USD) was trading at $1864 at the time of writing after a 9.5% gain in 24 hours. The gains have coincided with recovery across the broader cryptocurrency market.
Maker reverses the bearish trend
Maker (MKR) has been on a bearish trend for most of this week. A significant recession started on February 17. On this date, MKR was trading at around $21, but it has since taken a plunge, following an increased selloff across the market.
Currently, MKR’s downtrend seems to be exhausted, and with the market bounce, MKR has been paved from further dips. Buyer pressure is still high, with traders rushing to book profits due to the growing volatility. If the buyer pressure is sustained and the market displays a bullish flag, MKR will head towards the next resistance at $2000.
Breaking past $2000 will place MKR at a weekly high, which could trigger some sellers to start disposing of the token. However, if buy orders have been placed at this level, MKR could make a break towards $2200. If market support fails and selling pressure grows, it could be rejected at these levels.
The broader market is still bearish
The market started recovering on Tuesday afternoon after massive selloffs were witnessed on Monday. The overall sentiment is still bearish, and MKR could start going downhill. In this case, the $1600 levels will be tested, taking back the coin to the levels recorded early last year.
Testing $1600 will be a major defence line for MKR, and for the token to avoid going lower, buyers need to hold the prices above these levels. If it dips further, MKR can go downhill to $1400. Currently, the external factors are rooting for a bearish market; hence, MKR could continue to register lower lows for the short term.